Dothan & Houston County Real Estate Market Update
Dothan & Houston County Real Estate Market Update
May Real Estate Market Update For Dothan, AL Area
It’s summer, and the buying season is in full swing here in Dothan. Spring is when listings start to pick up, but now that schools are out and families are out and about, we’re seeing a surge of selling and buying. Inventory is on the rise, and prices are still climbing. Interest rates have remained pretty steady over the past month.
Interest Rate Update
Interest rates have been mostly flat, but over the past couple of weeks we’ve seen competitive 30-year fixed rates below 7%. Investment and second home rates will be higher, around 7.5% or so.
Inventory Is Increasing
In Dothan, the number of homes for sale is on the rise slowly but surely, with May’s inventory reaching its highest level since May 2020. Currently, there are more houses, condos, and townhomes available than we’ve seen in a while. While this is still below the early Covid numbers and the pre-Covid levels, it’s a still a pretty good increase from May 2023.
Months Of Supply Increasing Slowly
The market absorption rate, or (months’ supply of homes for sale), has climbed 12% from this time last year to 2.35 months. This indicates that we’re still in a full-on seller’s market, but it’s much more balanced than it was just six months ago or last year. If you’re thinking about selling, now is the perfect time. The market conditions are favorable, and this time of year is ideal for getting your property noticed.
New Listings Are Increasing
In May, we saw an uptick in new listings, which aligns with the usual seasonal trend. Compared to last year, May listings were up 8%, but they’re still down from where they were two years ago.
Closed Sales Are Flat Year-Over-year
Closed sales are almost the exact same as they were last year at this time.
Buyers and Sellers Are Negotiating
The yellow line below shows us 2024. List to sales price ratio is 96.4% so sellers are negotiating a little but appears that is trending upword. Buyers do have a little bit of leverage, especially on homes that may have been on the market for a little while.
Home Prices Are Still Climbing
Countywide, median home prices are up 4.2% over the last year. Dothan home prices are up 5.5%, and Houston County is up 8.5% year-over-year.
Spring Land Sales Have Tapered Off
April land sales started of extremely hot with 25 closings in April but have cooled off back to 5 transactions for May.
Talk To a Local Agent About The Dothan Real Estate Market
Please feel free to contact us to speak with a local Dothan real estate agent about the real estate market in Dothan, AL and the surrounding areas. Or click here to subscribe to our quarterly Dothan Real Estate Market Updates.
