Sales: Lake Martin area residential sales totaled 92 units during July, up 55.9% from 59 sales in the same month a year earlier. July sales were up 46% compared to 63 sales in June. Results were 70.4% above the five-year July average of 54 sales. Two more resources to review: Quarterly Report and the Annual Report.
For all of Lake Martin’s area housing data, click here.
Inventory: Homes listed for sale in the Lake Martin area during July totaled 568 units, an increase of 13.4% from July 2018’s 501 units, and a decrease of 1.9% from June 2019’s 579 units. July months of supply totaled 6.2 months, a decrease of 27.3% from July 2018’s 8.5 months of supply. July months of supply decreased 32.8% from June’s 9.2 months of supply.
Pricing: The Lake Martin area median sales price in July was $271,000, an increase of 9.7% from one year ago and a decrease of 17.4% from June’s median sales price of $328,000. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends contacting a local real estate professional for additional market pricing information. The average number of days on the market (DOM) for homes selling in July was 140 days, an increase of 6.1% from 132 days in July 2018.
Forecast: July sales were 28 units, or 43.8%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 64 sales for the month, while actual sales were 92 units. ACRE forecast a total of 397 residential sales so far in 2019, while there were 459 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.
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The Lake Martin Residential Monthly Report is developed in conjunction with the Lake Martin Area Association of Realtors to better serve consumers in the region.