Top 5 Markets for Home Price Appreciation (August 2019)
The Alabama Center for Real Estate created the following rankings based on median price appreciation in August 2019:
- 1. Gadsden Area: 23.8%
- 2. Lake Martin Area: 19.6%
- 3. Dothan Area: 18.2%
- 4. Marshall County: 17.4%
- 5. Huntsville Area: 16%
Statewide Average: 8.1%
National Average: 4.7%
Gadsden Area: Alabama’s strongest market for home price appreciation in August was the Gadsden area. Median sales price increased 23.8% to $154,750 when compared to last year’s median price of $125,000. Additionally, median sales price in the area is up 9.7% year-to-date (YTD). One contributing factor of rising prices can be the decreasing inventory levels in the area. Inventory levels have decreased 21.2% compared to August of 2018. With rising prices and declining inventory in the Gadsden area, it is not surprising to see properties in the area selling at a faster pace than last year. August sales spent an average of 97 days on the market, an improvement of 16 days from 113 in August 2018. Additionally, with 4.1 months of supply, the area remains a seller’s market.
Lake Martin Area: The Lake Martin area had the second highest home price appreciation in the state during the month of August. Last August’s median sales price of $238,250 was eclipsed by 19.6% when compared to this year’s total of $285,000. Similar to statewide inventory trends, the Lake Martin area inventory is on the decline. This year’s total units listed, 540, has fallen by 29 units (-5.1%) when compared to one year ago. The market currently has 7.3 months of supply, which is 1.3 months above equilibrium. This surplus of supply creates a market where buyers generally have elevated bargaining power.
Dothan Area: The Dothan area saw 18.2% median price appreciation when compared to the same time last year, making Dothan third for price growth during August. Median sales price this month came to a total of $164,000, an 18.2% increase when compared to August of 2018’s total of $138,700. Year-to-date, median sales price in the area is up 6.5%. This significant jump in price can partially be attributed to the 30.2% drop in inventory when compared to last year. Homes in this area are also selling at an average of 15 days faster when compared to August 2018. The Dothan area currently has 5.2 months of supply, reflecting a seller’s market. August’s 5.2 months of supply is 46.5% below the 5-year average of 9.7 months of supply.
Marshall County: The Marshall County area comes in fourth this month on our list of fastest appreciating markets. Home prices in this area grew 17.4% when compared to the same time last year when median sales price in the area was $144,680. Additionally, median sales price in the area is up 12.7% YTD. Average days on market during August decreased 9.1% Y/Y from 88 to 80. Year-to-date, properties are selling 8 days faster in the Marshall County (88 vs. 80). Mirroring regional trends, inventory is tight as August listings declined 18.3% Y/Y from 404 one year ago to 330. Marshall County currently has 3.3 months of supply, reflecting a seller’s market in the area.
Huntsville Area: The Huntsville area also saw significant price growth this month, landing in fifth place for the month of August. Median sales price was up 16% to $224,494 when compared to August of 2018’s median price of $193,500. Following statewide trends, inventory decreased by 482 units (28.4%) from one year ago. The Huntsville area currently has 1.5 months of supply, down 33.9% from one year ago. Huntsville’s inventory-to-sales ratio is 4.5 months below equilibrium, creating a market where sellers have elevated bargaining power.
CCIM 4Q19/1Q20 CRE Insights Report