June home sales in Lee County continuing to increase steadily

Sales: According to the Lee County Association of Realtors, June residential sales in the Auburn-Opelika area increased 8.5% year-over-year from 260 to 282 closed transactions, marking 13 consecutive months of Y/Y gains. Not following seasonal trends, sales decreased 0.7% from May. Sales are now up 33.3% year-to-date. 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 June decreased 40.33% year-over-year from 615 to 367 listings. Months of supply decreased from 2.4 to 1.3, a record low and reflecting a market where sellers generally have elevated bargaining power.

Pricing: The area’s median sales price in June was $295,000 an increase of 12.6% from one year ago and an increase of 5.6% from May. 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 June averaged 36 days on the market (DOM), 28 days faster than June 2020.

Forecast: June sales were perfect this month forecasting 282 units, the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 282 sales for the month, while actual sales were 282 units. ACRE forecast a total of 1424 sales in the area year-to-date, while there were 1449 actual sales through June, a difference of 1.79%.

New Construction: The 70 new homes sold represent 24.8% of all residential sales in the area in June. Total sales decreased 6.7% year-over-year. The median sales price in June was $327,450, an increase of 1.7% from May and an increase of 13% from one year ago.

NAR Commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased in June rising 1.4% from May (seasonally adjusted annual rate). The gain ends four consecutive months of declining sales. June sales were up 22.9% from one year ago. The median sales price for existing homes hit another historic high ($363,300), rising 23.4% year-over-year and marking 112 consecutive months of year-over-year gains. Rising home prices are largely a result of low housing inventory amid significantly elevated demand. Supply did improve somewhat, rising 3.3% from May 2021 but is still down 18.8% from June 2020. Months of supply (2.6) increased modestly from May but is still well below June 2020 (3.9).

Lawrence Yun, chief economist for NAR said, “Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales. Home sales continue to run at a pace above the rate seen before the pandemic.”

Yun added that home prices are unlikely to decline saying, “At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year. Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.”

ACRE Commentary: Home sales in Alabama increased year-over-year (Y/Y) for the 13th consecutive month in June, rising 14.4%. Demand remains significantly elevated as home sales are now up 21.8% year-to-date. The statewide median sales price hit another record high of  $216,580, with sales price growth rates moderating somewhat, rising 11.7% Y/Y. The state’s housing supply received a small measure of relief as listings increased 6.3% from May, but is still down 39.4% from one year ago. June’s 1.2 months of supply also represents a record low, with properties selling an average of 34 days faster than June 2020.

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.

Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period June 1 – 30, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.

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