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Click here to view or print the entire May report compliments of the ACRE Corporate Cabinet.
View full sizeLee County residential sales rise 20% in May from last year. Housing Inventory has been reduced by 41% from its May 2010 peak. Infograph courtesy of ACRE. All rights reserved.Monthly Sales: Lee County residential sales totaled 169 units in May, a significant improvement in sales growth of 19.9 percent from the same period a year earlier. May sales were 26 units above our monthly forecast. The year-to-date sales forecast through May projected 531 closed transactions while actual closings were 521 units.
Supply: The Lee County housing inventory in May was 897 units, a decrease of 9.8 percent from May 2013 and 40.8 percent from the month of May inventory peak in 2010 (1,516 units).
May inventory in Lee County increased by 1.1 percent from the prior month. This direction is consistent with historical data indicating that May inventory on average (’09-’13) increases from the month of April by 1.2 percent.
View full sizeLee County inventory-to sales ratio was 5.3 months of housing supply. Any figure below 6 months is considered a seller’s market. Infograph courtesy of ACRE. All rights reserved.The inventory-to-sales ratio in May was 5.3 months of housing supply. Restated, at the May sales pace, it would take 5.3 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during the month of May. This represents the first local market in Alabama that can be officially labeled a seller’s market. The last time the market experience 5.3 months of housing supply was August 2006.
Demand: Residential sales increased by 34.1 percent from the prior month. This favorable direction is consistent with historical data indicating that May sales on average (’09-’13) increases from the month of April by 22.7 percent.
Existing single family home sales account for 50 percent (up from 57% in May’13) of total sales while 24 percent (same as May’13) were new home sales and 16 percent (down from 19% in May’13) were condo buyers.
Pricing: The Lee County median sales price in May was $178,500, a 9.5 percent increase from last May. In addition, the May median price improved 4.5 percent compared to the prior month. Historical data (’09-’13) indicates that the May median sales price traditionally increases from the month of April by 4.1 percent. Pricing can fluctuate from month-to-month as the sample size of data (closed transactions) is subject to seasonal buying patterns so a broader lens as to pricing trends is appropriate and we recommend contacting a local real estate professional for additional market pricing information.
Industry Perspective: “One consistently clear leading indicator for future home sales has been jobs. Simply, more jobs mean more home sales” expresses Lawrence Yun, Chief Economist of the National Associations of REALTORS in this State Employment Job Growth Blog published June 3rd. As outlined in the analysis, Alabama’s gradual but less than robust job growth is consistent with home sales posted thus far in 2014.
See how Lee County compares to other Alabama real estate markets.
The Lee County Residential Monthly Report is work product developed in conjunction with the Lee County Association of REALTORS to better serve Opelika/Auburn consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current available data. Real estate is local and statistics will fluctuate between areas within a city including subdivisions. ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market.
The foundation of the Lee County Association of REALTORS is to promote and enhance the success of its members through education, professionalism, and ethical conduct.
The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach. ACRE was founded by legislative act in 1996 due to the efforts of the Alabama Real Estate Commission, the Alabama Association of REALTORS and the Office of the Dean, UA Culverhouse College of Commerce to serve the State of Alabama real estate industry and the consumers it serves. ACRE is not a state-funded entity, rather its operates in part because of the goodwill & generosity of the ACRE Corporate Cabinet, Alabama real estate licensees and our statewide ACRE Partners. For other Alabama real estate resources & news, please visit our website and our ACRE blog. You can also follow ACRE from our facebook page and on twitter @uaacre.”
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