Monthly Sales: Lee County residential sales totaled 107 units in September, a significant improvement in sales growth of 39.0 percent from the same period a year earlier. September sales were 13 units above our monthly forecast. The year-to-date sales forecast through September projected 1,090 closed transactions while actual closings were 1,116 units.
View full sizeLee County residential sales rise 39% in September from last year. Housing Inventory has been reduced by 39% from the September 2010 peak. Infograph courtesy of ACRE. All rights reserved.
Supply: The Lee County housing inventory in September was 800 units, a decrease of 8.4 percent from September 2013 and 39.2 percent from the month of September inventory peak in 2010 (1,315 units).
September inventory in Lee County also decreased by 2.4 percent from the prior month. This direction is consistent with historical data indicating that September inventory on average ('09-'13) decreases from the month of August by 4.7 percent.
The inventory-to-sales ratio in September was 7.5 months of housing supply. Restated, at the September sales pace, it would take 7.5 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 7.5 months during the month of September so Lee County is a market where buyer and seller currently enjoy equal bargaining power.
Demand: As expected, residential sales decreased by 24.6 percent from the prior month. This direction is consistent with seasonal historical data indicating that September sales on average ('09-'13) decreases from the month of August by 4.8 percent.
Existing single family home sales account for 64 percent (up from 60% in Sept'13) of total sales while 24 percent (down from 32% in Sept'13) were new home sales and 12 percent (up from 8% in Sept'13) were condo buyers.
Pricing: The Lee County median sales price in September was $180,000, a 10.8 percent decrease from last September. The higher than normal of condo sales may have skewed, in this case, lowered the September median sales price. The September median price did rise 7.0 percent compared to the prior month. Historical data ('09-'13) indicates that the September median sales price traditionally increases from the month of August by 2.0 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: "The September National Housing Survey shows a slight recovery in consumer housing sentiment after a two-month setback, bringing us back to the modestly positive trend we've seen over the last year," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "It might be too late to save this year's home sales from posting the first decline in five years. However, the return to an upward trend in housing sentiment, combined with this month's positive news on the jobs front, suggests that a broad-based, albeit measured, housing recovery is on track to resume in 2015. The results of the past few months show that consumer optimism remains cautious and somewhat volatile, and we'll likely continue to see bumps on the housing recovery path reflected in our survey results." For full report, go HERE.
See how Lee County compares to other Alabama real estate markets. Information provided by ACRE http://blog.al.com/acre/2014/10/lee_county_area_residential_sa_10.html
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