You’ll notice a couple of things with this month’s update. First, some of the numbers from previous months are different from the numbers in previous market updates. Why? I have been using some numbers from the Alabama Real Estate Research Center, but I have started to question their accuracy. Some months they are higher than the MLS numbers, and some months lower. So in order to be consistent, we’ll stick with the raw data from the Dothan MLS. 2007 numbers have been adjusted accordingly.
The other change relates to what numbers we will be looking at. I have previously been presenting a lot of statistics to you in table format, which makes it more difficult to get a true picture of trends and the like. Starting with this update, we will focus the monthly Dothan real estate market update on numbers that are most relevant month-to-month, such as inventory, pendings and solds, and absorption rate. Other statistics, such as median price, days on market, and list-to-sale price ratio, can fluctuate significantly each month, so we will analyze those each quarter instead.
Today, the numbers for sales and pending sales. Tomorrow, inventory and absorption rate. Enough rambling…here are the numbers.
Sales and Pending Sales
Real estate sales are seasonal. Sales slow down during the winter months, and early spring and mid-summer are usually busy. So when looking at numbers for pendings and solds, we need to compare current data with the same months in previous years instead of only previous months, such as we do with inventory. Doing so gives us a better picture of what is really going on.
The number of homes marked as pending sales is a good indicator of the market activity over the next 30 – 60 days. Looking at the graph, pending sales are continuing to show a downward trend.
Take a look at the last three months of homes sales figures compared to 2006. Remarkably similar numbers. Is this a sign of a market that is leveling off? Could be. We’ll keep an eye on it.
Looking for more information on the Dothan real estate market? Visit the website at www.dothanhomesearch.com
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