Markets With the Strongest Price Growth in January 2020
Topics: Residential Real Estate
The Alabama Center for Real Estate created the following rankings based on year-over-year growth in median sales price during January 2020:
Statewide Average: 11.8%
National Average: 6.8%
Marshall County: Alabama’s strongest market for home price appreciation in January was Marshall county. Median sales price increased 33.9% to $166,000 when compared to last year’s median price of $123,950. One contributing factor of rising prices was the decrease in listings, which dropped 17.7% year-over-year. January sales spent an average of 69 days on the market, a decrease of 41 days from 110 days in January 2019. The area currently has 3.9 months of supply, down from 6.8 months one year ago.
Cullman Area: The Cullman area had the second highest home price appreciation in the state during the month of January. Last January’s median sales price of $129,500 was surpassed by 22.8% when compared to this year’s total of $159,000. Similar to statewide inventory trends, the Cullman area inventory is on the decline. This year’s total units listed, 400, has fallen by 63 units (13.6%) compared to one year ago. The market currently has 5.8 months of supply, which is 0.2 months below equilibrium. This small shortage of supply creates a market where sellers generally have elevated bargaining power.
Lee County: Lee County area saw 17.8% median price appreciation when compared to the same time last year, making Lee County third for price growth during January. Median sales price this month came to a total of $276,752, up significantly January 2019’s price of $235,000. Year-to-date median sales price in the area is up 6.4%. Going against stadewide trends, Lee County’s inventory increased 9.0% from 568 homes listed last January to 619 this year. Despite the increase in inventory, homes in this area are selling at an average of 15 days faster when compared to January 2019. Lee County currently has 4.8 months of supply, reflecting a seller’s market in the area. January’s 4.8 months of supply is 23.4% below the 5-year average of 6.3 months of supply.
Lake Martin Area: The Lake Martin area comes in fourth this month on our list of markets with the strongest price growth in January. Home prices in this area grew 16.3% when compared to the same time last year when median sales price in the area was $172,000. Mirroring regional trends, inventory is tight as January listings declined 8.8% Y/Y from 443 one year ago to 404. Average days on market during January saw a slight decrease of 1.2% Y/Y from 166 to 64. Differing from stadewide trends, the Lake Martin area currently has 10.9 months of supply, up from 6.6 months last year, reflecting a buyer’s market in the area.
Wiregrass Region: The Wiregrass Region also saw significant price growth this month, landing in fifth place for the month of January. Median sales price was up 14.4% to $135,000 when compared to January of 2019’s median price of $118,000. Following statewide trends, inventory decreased by 185 units (30.3%) from one year ago. The Wiregrass region currently has 4.2 months of supply, down 68.9% from one year ago. The area’s inventory-to-sales ratio is 1.8 months below equilibrium, creating a market where sellers typically have elevated bargaining power.