Dothan real estate market - February inventory report

This article was originally posted on DothanHomeSearch.com

As expected, the number of homes for sale in Dothan has moved back up this month. As of this past Monday, there were 1012 houses listed for sale in the Dothan MLS, up from 979 in January. Inventory levels are seasonal just like sales are, so we expect this number to move up even more, although how much is hard to predict.


Absorption rate
We have already talked about how pending sales are up significantly right now, but that rise has yet to translate into any increase in the number of homes sold (more on home sales next week). The absorption rate for February rose to 18.4 months. Basically, what this means is that if no more homes came on the market, it would take a year and a half to sell everything, based on current sales numbers.

This month we are going to look at absorption rates based on price range instead of area. This table shows the number of months of inventory in the respective price range.

	Sold	Active	Absorption
Price Range	January	2/6/2008	Rate (months)
$50,000 - $99,999	8	155	11.6
$100,000 - $149,999	7	237	19.2
$150,000 - $199,999	10	233	21.2
$200,000 - $249,999	7	86	15.2
$250,000 - $299,999	4	108	27
$300,000 - $399,999	2	94	94
Over $400,000	0	67	-

To say the housing market in Dothan in the $250,000 price range is slow might be an understatement. To say the market in homes priced over $400,000 is dead is not a stretch at all.