Top 5 Markets for Home Price Appreciation: June 2019
The Alabama Center for Real Estate created the following rankings based on median price appreciation in June 2019:
- 1. Dothan Area: 16.2%
- 2. Decatur Area: 15.4%
- 3. Mobile Area: 12.4%
- 4. Calhoun County: 12.0%
- 5. Montgomery Area: 9.3%
Statewide Average: 7.3%
National Average: 4.3%
Dothan Area: Alabama’s strongest market for home price appreciation in June was the Dothan area. Median sales price increased 16.2% to $174,250 when compared to last year’s median price of $150,000. Additionally, median sales price in the area is up 3.7% year-to-date (YTD). One contributing factor of rising prices can be the decreasing inventory levels in the area. Inventory levels have decreased 21.9% compared to the same time last year. With rising prices and declining inventory in the Dothan area, it is not surprising that the area as a whole is a seller’s market with 5.7 months of supply during June.
Decatur Area: The Decatur area had the second highest home price appreciation in the state during the month of June. Last June’s median sales price of $140,000 was eclipsed by 15.4% when compared to this year’s total of $161,500. Additionally, median sales price in the area is up 9.8% YTD. Similar to statewide inventory trends, Decatur’s inventory is on the decline. This year’s total units listed, 374, has fallen over 22.9% when compared to last year. Homes in this area are also selling 28.9% faster when compared to the previous year. The market currently has 2.6 months of supply, 13.9% less than last year.
Mobile Area: The Mobile area saw 12.4% median price appreciation when compared to the same time last year, making Mobile Alabama’s third for price growth during June. Median sales price this month came to a total of $159,000, a 12.4% increase when compared to June of 2018’s total of $141,450. Year-to-date, median sales price in the area is up 3.7%. This significant jump in price can be attributed, in part, to the 9.1% drop in inventory when compared to last year. Homes in this area are also selling at an average of 9 days faster when compared to June 2018. The Mobile area currently has 3.0 months of supply, reflecting a seller’s market.
Calhoun County Area: Calhoun County, located near the border of Alabama and Georgia, comes in fourth this month on our list of fastest appreciating markets. Home prices in this area grew 12.0% when compared to the same time last year when median sales price in the area was $124,900. Additionally, median sales price in the area is up 2.8% YTD. Days on market saw a significant drop of 16.7% when compared to the previous year, inventory also saw a drop of over 16%. This time last year there were 727 total homes listed for sale, while there are currently 606 listings. Calhoun County currently has 3.7 months of supply, reflecting a seller’s market in the area.
Montgomery Area: The Montgomery area also saw price growth this month, landing in fifth place on our list for the month of June. Median sales price was up 9.3% to $169,900 when compared to June of 2018’s median price of $155,500. . Homes in this area are leaving the market an average of 9 days sooner than one year ago. Inventory also took a significant fall decreasing 10.3% since June of last year. And finally, the Montgomery area has 4.2 months of supply, indicating a strong sellers market.
CCIM 4Q19/1Q20 CRE Insights Report