Homes in Dothan area sell faster on average than one year ago
Sales: According to the Southeast Alabama Association of Realtors, Dothan-area residential sales totaled 128 units during October, down 3% from 132 sales in the same month a year earlier. October sales were down 20% compared to 160 sales in September. Results were 15.7% above the five-year October average of 111 sales. Two more resources to review: Quarterly Report and Annual Report.
For all of Dothan’s area real estate data, click here.
Inventory: Homes listed for sale in the Dothan area during October totaled 762 units, a decrease of 24.1% from October 2018’s 1,004 units and a decrease of 5.6% from September 2019’s 807 units. October months of supply totaled 6 months, a decrease of 21.7% from October 2018’s 7.6 months of supply. October months of supply increased 18% from September’s 5 months of supply.
Pricing: The Dothan median sales price in October was $149,000, a decrease of 5.7% from one year ago and a decrease of 9.7% from the prior month. This direction is inconsistent with historical data (2014-18) indicating that the October median sales price on average increases from September by 6.5%. 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 October spent an average of 119 days on the market (DOM), down 5.6% from 126 days in October 2018 and down 7.8% from 129 days in September.
Forecast: October sales were equal to the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 128 sales for the month, and actual sales were 128 units. ACRE forecast a total of 1,288 transactions in Dothan year-to-date, while there were 1,424 actual sales through October.
ACRE’s statewide perspective: Residential sales growth continued in September as total residential sales increased 8.7% year-over-year from 5,069 to 5,510 closed transactions. Year-to-date, sales are up 4.3% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in September increased 7% year-over-year, marking 23 consecutive months of gains. The statewide median sales price is up 4.3% year-to-date. While nationwide inventory levels (active listings) decreased 2.7% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the third quarter of 2019. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace than one year ago. Homes selling in Alabama during September spent an average of 82 days on the market, a decrease of eight days from September 2018.
NAR’s national perspective: Existing home sales rebounded in September, increasing 7.4% year-over-year from approximately 421,000 closed transactions one year ago to 452,000 currently. The nationwide median existing-home price increased 5.9% in September, marking 91 consecutive months of year-over-year gains. John Smamby, president of the National Association of Realtors, said, “For families on the sidelines thinking about buying a home, current rates are making the climate extremely favorable in markets across the country. These traditionally low rates make it that much easier to qualify for a mortgage, and they also open up various housing selections to buyers everywhere.”
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The Southeast Alabama Residential Monthly Report was developed in conjunction with the Southeast Alabama Association of Realtors to better serve area consumers.