The January slide has continued into February, with February sales dropping over 24% from February, 2008. The number of homes sold was up 50% from January however. Overall, home sales in the Dothan real estate market are down a full 25% for the first two months of 2009, compared to 2008.
Pending sales have leveled off as well, although the total number is still significantly higher than it was three months ago. With spring arriving and the new $8,000 tax credit for first-time home buyers, I do feel there will be an upturn in the numbers soon.
Not surprisingly, the $110,000 to $160,000 price range is currently the most active. The upper end market has picked up some as well, with seven sales over $300,000 in the last 45 days.
I have to say that I didn’t see this big of a drop-off coming. We have been very busy around our office, so I assumed everyone else was too.
As far as national market trends go, the Dothan area is typically 12–24 months behind the national trends. If you read our monthly inventory report earlier this week, you saw that while the number of homes for sale here in the Dothan area is climbing, the number in most other areas is declining. And while median price was falling over most of the country last year, Dothan remained stable. That being said, I think we are reaching the point where price is going to have to come down to move the mountain of inventory we have accumulated.
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