Lee County year-to-date home sales up 14 percent over last year during February
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Sales: According the Lee County Association of Realtors Multiple Listing Service, Lee County area residential sales totaled 119 units during February, a decrease in sales of 2.5 percent or three units below the same period last year. Two more resources to review: Quarterly Report and Annual Report.
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Forecast: February sales were 26 units or 28 percent above our monthly forecast. ACRE’s year-to-date sales forecast through February projected 172 closed transactions while the actual sales were 214 units, a favorable rise of 24 percent.
Lee County home sales hit 119 units for the month of February.
Supply: The Lee County housing inventory in February was 591 units, a decrease of 21 percent from February 2015 and a 58 percent decrease from the month of February inventory peak in 2011 (1,417 units). February inventory in Lee County decreased 0.3 percent from the prior month. This direction contrasts with historical data indicating that February inventory on average (2011-15) increases from the month of January by 13.4 percent.
The inventory-to-sales ratio in February was 5.0 months of housing supply. Restated, at the February sales pace, it would take 5.0 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months (non-seasonally adjusted) during the month of February. Lee County was one of Alabama’s most balanced markets during February, especially compared to February 2011’s 28.9 months of supply.
Demand: February residential sales increased 25.3 percent from the prior month. This direction is consistent with seasonal buying patterns and historical data indicating that February sales on average (2011-15) increase by 1.3 percent from the month of January. Existing single family home sales account for 55 percent (up from 52 in February 2015) of total sales while 24 percent (down from 25 percent during February 2015) were new home sales and 21 percent (down from 23 percent during February 2015) were condo buyers.
Pricing: The Lee County median sales price during February was $179,900, up 9 percent from last February. The February median sales price decreased 14 percent compared to the prior month. This direction is consistent with historical data (2011-15) indicating that the February median sales price on average decreases from the month of January by 3.4 percent. Pricing can fluctuate from month-to-month as the sample size of data (closed transactions) is subject to seasonal buying patterns so a broader lens as to pricing trends is appropriate and we recommend contacting a local real estate professional to discuss the latest pricing trends with experts with boots on the ground.
Industry Perspective: “Our February results show the most modest consumer home price expectations since late 2012,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “For consumers who think it’s a bad time to buy a home, whose share has trended up from its recent low last November, high home prices have been an increasingly contributing factor. A slower pace of home price appreciation may provide some relief for potential homebuyers, especially first-time buyers who couldn’t reap the benefits of selling a home at high prices to buy another one.” For the full story, click here.
The Lee County Residential Monthly Report is work product developed in conjunction with the Lee County Association of Realtors to better serve Opelika/Auburn consumers.
