By: ACRE Research
Sales: Lake Martin area residential sales totaled 29 units during January, down 19.4 percent from 36 sales in the same month a year earlier. January sales were down 23.7 percent compared to 38 sales in December. Results were 10.7 percent above the five-year January average of 26 sales. Two more resources to review: Quarterly Report and the Annual Report.
For all of Lake Martin’s area housing data, click here.
Inventory: Homes listed for sale in the Lake Martin area during January totaled 443 units, an increase of 42.4 percent from January 2018’s 311 units, and an increase of 10.5 percent from December 2018’s 401 units. January months of supply totaled 15.3 months, an increase of 76.8 percent from January 2018’s 8.6 months of supply. January months of supply also increased 44.8 percent from December’s 10.6 months of supply.
Pricing: The Lake Martin area median sales price in January was $172,000, a decrease of 20.9 percent from one year ago and a decrease of 32.4 percent from December’s median sales price of $254,500. This direction is inconsistent with historical data (2014-18) indicating that the January median sales price on average increases from December by 12.3 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 January was 166 days, a decrease of 11.7 percent from 188 days in January 2018 and an increase of 16.1 percent from 143 days in December.
Forecast: January sales were four units, or 12.1 percent, below theAlabama Center for Real Estate’s(ACRE) monthly forecast. ACRE projected 33 sales for the month, while actual sales were 29 units. ACRE forecast a total of 685 residential sales in 2019, while there were 675 sales in 2018.
ACRE’s statewide perspective: After a strong 2018, statewide residential sales in January increased 1.1 percent year-over-year from 3,320 to 3,358 closed transactions. Home price appreciation in the state continued to climb as the median sales price in January increased 5.5 percent year-over-year from $143,152 to $151,015. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 7.4 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during January spent an average of 106 days on the market, an improvement of 10 days from 2018.
NAR’s national perspective: During January, total existing-home sales nationwide declined 9 percent from approximately 313,000 closed transactions one year ago to 285,000 currently. Lawrence Yun, chief economist for the National Association of Realtors, said, “Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”