Lee County area residential sales in May improve 20% from prior year!

By June 25, 2014Ashley

This is super news for Lee County, folks! Please enjoy this exciting read and call me TODAY for all of your Real Estate needs!

Reported By Alabama Center for Real Estate (ACRE)
on June 24, 2014 at 7:45 AM, updated June 24, 2014 at 7:48 AM

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.

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.

To read the article in it’s entirety, please follow the following link:

http://blog.al.com/acre/2014/06/lee_county_area_residential_sa_6.html