ALABAMA REAL ESTATE JOURNAL

Southeast Alabama housing inventory continues to tighten, reaches another record low in May

Sales: According to the Southeast Alabama Association of Realtors, May residential sales in the Dothan area increased 21.5% year-over-year (Y/Y) from 149 to 181 closed transactions. This season sales did not change from April. Sales are now up 13.56% year-to-date. Two more resources to review: Quarterly Report and Annual Report.

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

Inventory: Total homes listed for sale in May declined 59.7% year-over-year from 538 to 217 listings, a record low. Months of supply declined from 3.6 to 1.2, reflecting a market where sellers generally have elevated bargaining power. The equilibrium point is 4.8 months of supply (buyers and sellers have relatively equal bargaining power.)

Pricing: The Dothan area median sales price in May was $180,900. This is an increase of 13.1% from one year ago and a decrease of 9.1% from April. 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.

Homes sold in May averaged 106 days on the market (DOM), 13 days faster than May 2020.

Forecast: April sales were 7 units, or 3.9%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 188 sales for the month, while actual sales were 181 units. ACRE forecast a total of 813 residential sales year-to-date, while there were 779 actual sales through April, a difference of 4.14%.

Click here to view the entire monthly report.

The Southeast Alabama Residential Monthly Report is developed in conjunction with the Southeast Alabama Association of Realtors to better serve Dothan-area consumers.

Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period May 1 – 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.

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