Sales: Lake Martin area residential sales totaled 51 units during November, up 18.6 percent from 43 sales in the same month a year earlier. November sales were down 10.5 percent compared to 57 sales in October. Results were 59.4 percent above the five-year November average of 32 sales. Two more resources to review: Quarterly Report and the Annual Report.
Inventory: Homes listed for sale in the Lake Martin area during November totaled 453 units, an increase of 29.8 percent from November 2017’s 349 units, and a decrease of 10.1 percent from October 2018’s 504 units. November months of supply totaled 8.9 months, an increase of 9.4 percent from November 2017’s 8.1 months of supply. November months of supply also increased from October’s 8.8 months of supply.
Pricing: The Lake Martin area median sales price in November was $150,000, a decrease of 37.8 percent from one year ago and a decrease of 20.2 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the November median sales price on average decreases from October by 6.2 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 November was 119 days, a decrease of 28.3 percent from 166 days in November 2017 and a decrease of 22.7 percent from 154 days in October.
Forecast: November sales were seven units, or 15.9 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 44 sales for the month, while actual sales were 51 units. ACRE forecast a total of 640 residential sales year-to-date, while there were 637 actual sales through November.
ACRE’s statewide perspective: While nationwide sales declined 4.5 percent during November, residential sales in Alabama continued to grow. Total residential sales in Alabama increased 6.9 percent year-over-year from 4,311 to 4,606 closed transactions. Year-to-date through November, statewide residential sales are up 7 percent from 53,056 one year ago to 56,769 currently. Home price appreciation in the state continued to climb as the median sales price in November increased 3.2 percent year-over-year from $151,667 to $156,587. The year-to-date median sales price is up 4.7 percent from 2017. Although nationwide inventory levels increased 4.2 percent in November, Alabama’s residential inventory decreased 8.8 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during November spent an average of 93 days on the market, an improvement of 24 days from 2017.
NAR’s national perspective: During November, nationwide inventory for existing homes increased 4.2 percent year-over-year from 1.67 million to 1.74 million residential listings. According to Lawrence Yun, chief economist for the National Association of Realtors, “the market conditions in November were mixed, with good signs of stabilizing home sales compared to recent months, though down significantly from one year ago. Rising inventory is clearly taming home price appreciation.”