Sales: According to the Southeast Alabama Multiple Listing Service Inc., Dothan-area residential sales totaled 155 units during July, up 11.5% from 139 sales in the same month a year earlier. July sales were up one unit compared to 154 sales in June. Results were 25.8% above the five-year July average of 123 sales. Another resource to review is the Annual Report.
For all of Dothan’s area real estate data, click here.
Inventory: Homes listed for sale in the Dothan area during July totaled 824 units, a decrease of 29.2% from July 2018’s 1,063 units, and a decrease of 5.6% from June 2019’s 873 units. July months of supply totaled 5.3 months, a decrease of 30.5% from July 2018’s 7.6 months of supply. July months of supply decreased 6.2% from June’s 5.7 months of supply.
Pricing: The Dothan median sales price in July was $164,000, an increase of 13.1% from one year ago and a decrease of 5.9% from the prior month. This direction is consistent with historical data (2014-18) indicating that the July median sales price on average decreases from June by 5.5%. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE highly recommends consulting with a local real estate professional to discuss pricing trends, as they will vary from neighborhood to neighborhood. The homes selling in July spent an average of 112 days on the market (DOM), down 18.8% from 138 sales in July 2018 and down 13.2% from 129 days in June.
Forecast: July sales were 13 units, or 9.2%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 142 sales for the month, while actual sales were 155 units. ACRE forecast a total of 894 total transactions in Dothan year-to-date, while there were 995 actual sales through July.
ACRE’s statewide perspective: Statewide residential sales decreased slightly in June, ending a five-month streak of year-over-year sales gains. This was the first such decline since December 2018 and only the fourth in the last two years. Statewide residential sales decreased 3.4% from 6,277 closed transactions in June 2018 to 6,063 in June 2019. Year-to-date, however, sales are up 1.8% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in June increased 7.3% year-over-year from $164,987 to $177,018. The statewide median sales price is up 4.1% year-to-date. While nationwide inventory levels (active listings) are stabilizing (equal to June 2018), Alabama’s residential listings decreased 9.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer buying season of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during June spent an average of 86 days on the market, an improvement of 14 days from June 2018.
NAR’s national perspective: After a small gain in May, existing home sales weakened in June. Nationwide residential sales decreased 7.5% from approximately 570,000 closed transactions one year ago to 527,000 currently. The nationwide median existing-home price increased 4.4% in June, marking 88 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of REALTORS, said, “Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country.” Yun said there is a housing shortage across the country and more inventory is needed, especially in the entry-level price range. “Imbalance persists for mid- to lower-priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.
Click here to view the entire monthly report.
The Southeast Alabama Residential Monthly Report was developed in conjunction with the Southeast Alabama Association of Realtors to better serve area consumers.