Sales: According to the Southeast Alabama Association of Realtors, Dothan-area residential sales totaled 108 units during November, up 5.9% from 108 sales in the same month a year earlier. November sales were down 15.6% compared to 128 sales in October. Results were 19.2% above the five-year November average of 91 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 November totaled 728 units, a decrease of 25.4% from November 2018’s 976 units and a decrease of 4.5% from October 2019’s 762 units. November months of supply totaled 6.7 months, a decrease of 29.6% from November 2018’s 9.6 months of supply. November months of supply increased 13.2% from October’s 6 months of supply.
Pricing: The Dothan median sales price in November was $147,820, an increase of 1.8% from one year ago and a decrease of 0.8% from the prior month. This direction is consistent with historical data (2014-18) indicating that the November median sales price on average decreases from October by 7.6%. 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 November spent an average of 128 days on the market (DOM), down 6.6% from 137 days in November 2018 and up 7.6% from 119 days in October.
Forecast: November sales were three units above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 105 sales for the month, and actual sales were 108 units. ACRE forecast a total of 1,393 transactions in Dothan year-to-date, while there were 1,532 actual sales through November.
ACRE’s statewide perspective: Residential sales growth continued in October as total residential sales increased 6.7% year-over-year from 4,883 to 5,211 closed transactions. Year-to-date, sales are up 4.5% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in October increased 10.1% year-over-year, marking 24 consecutive months of gains. The statewide median sales price is up 5.5% year-to-date. While properties listed for sale nationwide decreased 4.3% year-over-year, Alabama’s residential listings continued to tighten, decreasing 10.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the fourth 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 October spent an average of 88 days on the market, a decrease of eight days from October 2018.
NAR’s national perspective: Existing home sales rebounded in October, increasing 3.8% year-over-year from approximately 446,000 closed transactions one year ago to 463,000 currently. The nationwide median existing-home price increased 6.2% in October, marking 92 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Historically-low interest rates, continuing job expansion and higher weekly earnings are undoubtedly contributing to these higher numbers. We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.”
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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.