By: ACRE Research
Sales: Lake Martin area residential sales totaled 59 units during July, up 34.1 percent from 44 sales in the same month a year earlier. July sales were down 18.1 percent compared to 72 sales in June. Results were 15.6 percent above the five-year July average of 51 sales. Two more resources to review: Quarterly Report and the Annual Report.
Inventory: Homes listed for sale in the Lake Martin area during July totaled 501 units, an increase of 17.1 percent from July 2017’s 428 units, and an increase of 6.1 percent from June 2018’s 472 units. July months of supply totaled 8.5 months, a decrease of 12.7 percent from July 2017’s 9.7 months of supply. However, July’s months of supply increased from June’s 6.6 months of supply.
Pricing: The Lake Martin area median sales price in July was $247,000, a decrease of 19 percent from one year ago and an increase of 11.8 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the July median sales price on average decreases from June by .3 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends contacting a local real estate professional for additional market pricing information. The average number of days on the market (DOM) for homes selling in July was 132 days, a decrease of 15.4 percent from 156 days in July 2017 and a decrease of 10.2 percent from 147 days in June.
ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the second quarter of 2018. Total residential sales increased 10.4 percent year-over-year from 16,450 to 18,157 closed transactions. Home price appreciation in the state also continues its upward trajectory, as the median sales price during the second quarter increased 4.3 percent year-over-year from $155,278 to $161,975. Mirroring national trends, statewide inventory decreased 9.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during the second quarter. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during the second quarter of 2018 spent an average of 98 days on the market, an improvement of 24 days from 2017.
NAR’s national perspective: During June, nationwide sales volume for existing homes decreased 5 percent year-over-year from 600,000 to 570,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “there continues to be a mismatch since the spring between the growing level of home buyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast, and in many cases has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”
The Lake Martin Residential Monthly Report is developed in conjunction with the Lake Martin Area Association of Realtors to better serve area consumers.