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Lee County Residential Sales Up 9% in 2012; Inventory Down 12%!!

By February 7, 2013Ashley

By Alabama Center for Real Estate (ACRE)
on February 07, 2013 at 7:31 AM, updated February 07, 2013 at 7:35 AM

Lee County residential sales growth of 8.9 percent led Alabama’s midsize markets in 2012. During the month of December, homes listed for sale dipped below the thousand unit mark for the first time since August 2006.
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Supply: The Lee County housing inventory in December was 921 units, a decrease of 12.0 percent from December 2011 and 26.2 percent from the month of December’s peak in 2010 (1,248 units).

There was 12.1 months of housing supply (6 months represents balanced market) in December 2012 versus 13.3 months of supply in December 2011, a solid decrease of 8.6 percent. Continued improvement in the decline of the months of supply would be welcome news.

December inventory in Lee County decreased by 9.5 percent from the prior month. Historical data indicates that December inventory on average (’07-’11) traditionally decreases from the month of November by 4.6 percent.

Lee County residential sales up 9% in 2012; homes listed for sale down 12% in December. Infograph courtesy of ACRE. All rights reserved.

Demand: December residential sales were down 8.4% from the prior month. This movemen

t contrast historical data indicating that December sales, on average (’07-’11), increase from the month of November by 14.1 percent.

Existing single family home sales accounted for 58 percent (same as in Dec’11) of total sales while 30 percent (up from 24% in Dec’11) were new home sales and 12 percent (down from 18% in Dec’11) were condo buyers.

Pricing: The Lee County median selling price in December was $166,250, an increase of 15.2 percent from last December ($144,375). The December median price also improved by 10.8 percent when compared to the prior month. Historical data (’07-’11) indicates that the December median selling price traditionally decrease from the month of November by 1.2 percent so this improvement from recent trends is encouraging news.
Real estate sales are seasonal and thesales pace slows during the winter months resulting in a higher degree of statistical volatility. With that said, seventy-two percent (18 of 25) of the local housing markets across the State experienced year-over-year sales growth in 2012 and that is welcome news for Alabama consumers as well our state’s real estate community. As for the latest economic forecast entering the new year, according to Global Insight’s most recent short-term outlook, “The economy still has only weak forward momentum. Some underlying fundamentals are improving—most importantly, housing. We expect that the fog of uncertainty (US fiscal policy) will gradually clear during 2013, setting the stage for a broad-based improvement in economic growth in 2014.”
This is FANTASTIC news for Lee County. Please call me for all of your Real Estate needs!