Top 5 Markets for Home Price Appreciation: July 2019
Topics: Research, Residential Real Estate
Markets: Dothan, Gadsden, Lake Martin Area, Marshall County, Montgomery Area, Statewide
The Alabama Center for Real Estate created the following rankings based on median price appreciation in July 2019:
- 1. Marshall County: 33.3%
- 2. Dothan Area: 13.1%
- 3. Montgomery Area: 12.5%
- 4. Gadsden Area: 11.5%
- 5. Lake Martin Area: 9.7%
Statewide Average: 4.6%
National Average: 4.3%
Marshall County: Alabama’s strongest market for home price appreciation in July was the Marshall County area. Median sales price increased 33.3% to $186,500 when compared to last year’s median price of $139,950. Additionally, median sales price in the area is up 12% year-to-date (YTD). One contributing factor of rising prices can be the decreasing inventory levels in the area. Inventory levels have decreased 18.4% compared to the prior month and 6.1% from one year ago. With rising prices and declining inventory in the Marshall County area, it is not surprising to see properties in the area selling at a faster pace than last year. Year-to-date, properties are selling 20 days faster than one year ago as the area’s average DOM declined from 105 to 85. Additionally, with 3.7 months of supply, the area remains a seller’s market.
Dothan Area: The Dothan area had the second highest home price appreciation in the state during the month of July. Last July’s median sales price of $145,000 was eclipsed by 13.1% when compared to this year’s total of $164,000. Additionally, median sales price in the area is up 5% YTD. Similar to statewide inventory trends, Dothan’s inventory is on the decline. This year’s total units listed, 824, has fallen by over 239 units when compared to one year ago. Homes in this area are also selling 18.8% faster when compared to the previous year. The market currently has 5.3 months of supply, 30.5% decrease from last year.
Montgomery Area: The Montgomery area saw 12.5% median price appreciation when compared to the same time last year, making Montgomery Alabama’s third for price growth during July. Median sales price this month came to a total of $175,000, a 12.5% increase when compared to July of 2018’s total of $155,500. Year-to-date, median sales price in the area is up 8.4%. This significant jump in price can be attributed, in part, to the 11.3% drop in inventory when compared to last year. Homes in this area are also selling at an average of 8 days faster when compared to July 2018. The Montgomery area currently has 3.8 months of supply, reflecting a seller’s market. July’s 3.8 months of supply is 32.0% below the 5-year average of 6.2 months of supply.
Gadsden Area: The Gadsden area comes in fourth this month on our list of fastest appreciating markets. Home prices in this area grew 11.5% when compared to the same time last year when median sales price in the area was $131,000. Additionally, median sales price in the area is up 7.7% YTD. Average days on market during July, however, increased 24.8% Y/Y from 105 to 131. Year-to-date, properties are selling 2 days slower in the Gadsden area (115 vs. 113). Mirroring regional trends, inventory is tight as July listings declined 19.5% Y/Y from 507 one year ago to 408 currently. The Gadsden area currently has 4.2 months of supply, reflecting a seller’s market in the area.
Lake Martin Area: The Lake Martin area also saw significant price growth this month, landing in fifth place for the month of July. Median sales price was up 9.7% to $271,000 when compared to July of 2018’s median price of $247,000. Going against statewide trends, inventory increased by 67 units (13.4%) from one year ago. The Lake Martin area currently has 6.2 months of supply, down 27.3% from one year ago. Lastly, Lake Martin’s inventory-to-sales ratio is 0.2 months above equilibrium, showing a continued transition towards a buyer’s market.