Sales: According to the Dothan Multiple Listing Service Inc., Dothan-area residential sales totaled 145 units during April, an increase of 42.2 percent from one year ago when sales totaled 102 units. More resources for the Dothan Area: Monthly Report, Quarterly Report, and Annual Report.
Forecast: Closed transactions in April were 22.9 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2018 sales forecast through April projected 436 closed transactions, while the actual sales were 449 units, a favorable difference of 2.98 percent.
Supply: The Dothan-area housing inventory in April was 1,107 units, an increase of 2.8 percent from April 2017. April inventory was 2 percent above March. Historical data indicate that April inventory on average (2013-17) increases from March by 0.4 percent. There were 7.6 months of housing supply during April (approximately 6 months represents a balanced market during April) versus 10.6 months of supply one year ago, a decrease of 27.7 percent.
Demand: Residential sales increased 13.3 percent from March. This month-over-month sales increase is consistent with historical data trends from 2013-2017 indicating that April sales, on average, increase 6.1 percent from March. Homes selling in the Dothan area during April averaged 142 days on the market, a decrease of 15 days from one year ago.
Pricing: The Dothan-area median sales price during April was $139,900, a 0.2 percent decrease from April 2017 and a 7 percent decrease from the prior month. This direction is inconsistent with historical data trends from 2013-2017 indicating that median price increases 17.8 percent from March. Differing sample sizes (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.
Industry Perspective: Statewide, residential real estate sales continued to show growth during the first quarter of 2018 as they grew 2.4 percent from the first quarter of 2017. Low inventory levels, however, played a large role in driving prices upward. During the first quarter of the year, the statewide median sales price increased 7.1 percent from one year ago. Although good news for sellers, this price growth, combined with rising interest rates, could lead to affordability issues for buyers in today’s markets.
Click here to generate more graphs from Dothan’s April Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.