Lee County home sales increase slightly in August

Sales: According to the Lee County Association of Realtors, August residential sales in the Auburn-Opelika area increased 1.2% year-over-year from 243 to 246 closed transactions. Following seasonal trends, sales decreased 13.1% from July. Sales are up 20.1% 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: July listings (416) increased 1% from July and declined 29.7% from one year ago. At the current sales pace, all the active inventory on the market would sell in 1.7 months, up from 1.5 months in July and down from 2.4 months in August 2020. The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply.

Pricing: The area’s median sales price in August was $305,743, an increase of 10.3% from one year ago and an increase of 1.9% from July. 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 August averaged 30 days on the market (DOM) a record low, and 44 days faster than August 2020. 

Forecast: August  sales were 4 units, or 1.5%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 250 sales for the month, while actual sales were 246 units. ACRE forecast a total of 1953 sales in the area year-to-date, while there were 1978 actual sales through August, a difference of 1.3%.

New Construction: The 75 new homes sold represent 30.5% of all residential sales in the area in August. Total sales increased 15.4% year-over-year. The median sales price in August was $329,900, an increase of 6.4% from July and an increase of 6.1% from one year ago. 

NAR Commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased for the second consecutive month in August rising 2% from July (seasonally adjusted annual rate). August sales were up 1.5% from one year ago. The median sales price for existing homes was $359,900, rising 17.8% year-over-year and marking 113 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 7.3% from July 2021 and is down 12% from one year ago. August’s 2.6 months of supply increased slightly from July (2.5) but is still well below August 2020 (3.1).

Lawrence Yun, chief economist for NAR said, “We see inventory beginning to tick up, which will lessen the intensity of multiple offers. Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren’t seeing as much growth because there are still too few starter homes available.”

Yun added that home prices are likely to moderate in the months ahead, “Although we shouldn’t expect to see home prices drop in the coming months, there is a chance that they will level off as inventory continues to gradually improve.”.

ACRE Commentary: Home sales in Alabama decreased year-over-year (Y/Y) in August, falling 1.4% (seasonally unadjusted). Sales also declined month-over-month, down 7.7% from July. Year-to-date, however, sales are up 17.3% from 2020. The statewide median sales price reached another record high of $218,374 with sales price growth rates moderating somewhat, rising 11% Y/Y. The state’s housing supply received a much-needed measure of relief as listings increased 12% from July, but are still down 29.3% from one year ago. With slowing sales and rising inventory, months of supply increased from 1.2 in July to 1.5 in August. Listings are also expected to gradually increase in the coming months.

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 August 1 – 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.

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