ALABAMA REAL ESTATE JOURNAL

Lee County Residential Sales up 7.9% in January

Sales: According to the Lee County Association of Realtors, January residential sales in the Auburn-Opelika area increased 7.6% year-over-year from 119 to 128 closed transactions. Following seasonal trends, sales decreased 17.9% from December. Results were 28.5% above the 5-year January average of 100 sales. Two more resources to review: Quarterly Report and Annual Report.

For all of the Lee County area’s housing data, click here.

Inventory: Total homes listed for sale in January increased 9% year-over-year from 568 to 619 listings. This gain is significant because it is the only metro area in the state with an inventory gain in January. The market currently has 4.8 months of supply, equal to one year ago.

Pricing: The area’s median sales price in January was $276,752, an increase of 17.8% from one year ago and an increase of 6.4% from the prior month. This direction is consistent with historical data (2015-2019) indicating that the January median sales price on average increases from December by 2.1%. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days on the market (DOM) for homes sold during January was 74 days, down 16.9% from 89 days one year ago and up 15.6% from 64 days in December 2019.

Forecast: January sales were six units, or 4.9%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 122 sales for the month, while actual sales were 128 units.

ACRE’s statewide perspective: Residential sales growth was especially strong in January as total residential sales increased 23.2% year-over-year from 3,347 to 4,122 closed transactions. Markets across the state have plenty of momentum as 2019 was a record year for residential sales in Alabama. Home price appreciation continued to climb as the median sales price in January increased 11.8% year-over-year, marking 27 consecutive months of gains. While properties listed for sale nationwide decreased 10.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 17% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2019 and continued into January. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace. Homes selling in Alabama during January spent an average of 92 days on the market, a decrease of 15 days from January 2019.

NAR’s national perspective: Existing home sales increased significantly in January, rising 11.6% year-over-year from approximately 285,000 closed transactions one year ago to 318,000 currently. The nationwide median existing-home price increased 6.8% in January, marking 95 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales. Mortgage rates have helped with affordability, but it is supply conditions that have driven price growth.” Properties listed for sale nationwide declined 10.7% in January from approximately 1.59 million listings one year ago to 1.42 million currently.

Click here to view the entire monthly report.

The Lee County Residential Monthly Report is developed in conjunction with the Lee County Association of Realtors to better serve area consumers.

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