dothanhomesearch.com

By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

Pending sales are at their highest level since last September, and are over 17% higher than this week one year ago.

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

CENTURY 21 Key Realty is pleased to welcome the most recent addition to our team. Priscilla Cutts recently joined us and is busily getting her real estate career up and running. She is a native of Mobile, Alabama, but has called Dothan home for the past 23 years. Having worked in the customer service industry nearly her entire life, Priscilla has developed a strong love for helping people in unique situations. She is also a real estate investor, which gives her a different perspective of the Dothan real estate market.

You can reach priscilla by email at priscilla(at)c21keyrealty(dot)com, or by phone at 334–714–7673

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

• The number of homes for sale in Dothan is now up to the highest level since June of last year, and is at least 10% higher than January, 2009.
• The number of pending sales is at a two month high, and about 10% above last January numbers.
• 43 homes sold in the last 30 days is a 52-week low

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

The premiums FHA charges to insure mortgages will rise to 2.25 percent from 1.75 percent this year, the agency said in a statement today. Borrowers who have credit scores below 580 will also have to make down payments of at least 10 percent, up from 3.5 percent, and allowable seller concessions will be cut by half.

via FHA Raises Premiums, Down Payments as Mortgages Sour (Update1) – Bloomberg.com.

Hit the link to read the reasoning behind these changes, which will be put into effect during the spring and summer.

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

The foreclosure rate in Alabama soared more than 156 percent in 2009 over the previous year, ranking it 30th in the nation, according to a recent report.

RealtyTrac, a tracker of foreclosures nationally, said 19,896 properties in the state were reported in some form of foreclosure last year, or one for every 107 households.

via Alabama foreclosure rate up 156 percent – Birmingham Business Journal:.

We have not seen this much of an increase in the Dothan area I don’t believe, but foreclosures are up compared to this time last year.

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By: Judy Spears
Broker Associate, CRS, ABR, GRI, CNHS

http://www.judyspears.com

2009 was a somewhat tumultuous year for the new construction market here in Dothan. Total new homes starts for the year dropped 26% from 2008 numbers, and MLS sales figures show just over 200 new homes sold in Dothan last year. This number does not include any houses that may have been sold by the builder and never entered into the MLS.

The number of new construction homes for sale around Dothan has held at 178 homes for the last few months, which is the lowest level since the market peak in 2006. There were 18 new construction homes sold in December, according to data from the Dothan MLS, with an average price per square foot of $103.19, and average days on the market of 150 days.

If you have an interest in building or purchasing a new construction home, give me a call or use the contact form. As a Certified New Homes Specialist (CNHS), I have extensive training in the new home market and would be happy to consult with you on your real estate needs.

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

• The number of houses for sale in Dothan moved right back up this week, as did median list price
• The number of pending sales continues to be well above the same week last year

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

The decline in home sales in the Dothan real estate market that started in late 2007 and early 2008 continued throughout 2009. Once the final numbers are in, we will see a drop of between 10 and 15 percent for the year, compared to 2008. The light at the end of the tunnel is that the last quarter of 2009 was remarkable better than the previous three, so it is possible that the corner has been turned.

The Homebuyers Tax Credit certainly has stimulated some sales. And although lenders are still somewhat tight with their money, qualified buyers are getting financing and buying houses. We are still in a buyers market too, with over 1,000 houses on the market right now. This fact, along with still low mortgage rates, makes it a very good time to be interested in buying real estate.

Back in January of last year, we looked at how we thought 2009 would pan out. As tumultuous as the year was, the predictions we made were pretty well spot on. We watch the market on a daily basis, and we really don’t believe there is anyone that does it better. But of course, you are here reading our blog, so what else would we say?

Here is how we finished 2009, and how we think 2010 may shape up.

Home sales will be down again in 2010

The final numbers for 2009 will show it to be the slowest year for home sales in the Dothan, Alabama market since 2002. Will things head in the other direction in 2010? Well, we aren’t going to go out on that limb just yet. We predicted a 8% to 10% drop in 2009, and it ended up being a little more than that. So we’ll go with another 2% to 5% drop in Dothan home sales in 2010. It is entirely possible, depending on how things play out, that we could start seeing some year-over-year increases later in the year.

Homes on the market will fall slightly

We said last January that the number of homes on the market would remain around the 1,000 number for 2009, and that turned out to be right. There is really no reason to think that this number is going to drop significantly anytime soon. We fully expect inventory levels to end 2010 around the 950 homes mark. Any number below that will likely mean the market has turned around quicker than anticipated. If the Dothan real estate market is truly poised to make a turnaround, then we should start to be a steady drop in the near future.

Mortgage rates will rise slightly

This prediction is really made because it is inevitable. Rates have been so low for so long they really have no other direction to go. If you watch our rate tracker over in the far right column on this page, you’ll see that mortage rates have been steady at five percent of better for awhile now. How long can they hold at this level? That remains to be seen. We do believe that rates will rise slightly this year, but we will still be looking at 30–year fixed mortgage rates under six percent come December.

Foreclosures up

Same prediction as last year. Foreclosures are up in our area and will likely continue to rise. The severity of the hit the Dothan real estate market takes related to foreclosures will again depend on what happens with the economy. Foreclosures happen when folks can’t make their house payment, so a continued sluggish economy will only mean an increase in foreclosures.

New Construction steady

The new construction market in Dothan took a big hit in 2009, with home starts down more than 25% from 2008. That means our prediction from last year missed the mark. We don’t look for a big rebound in the new home market here in Dothan in 2010, but like mortgage rates, there really is nowhere to go but up.

Median Price down

Last January we predicted that the median price of a home in the Dothan real estate market would drop to under $130,000 for the first time since 2005. But despite sales dropping to 2002 levels, the median price dropped less than a half a percent in 2009, ending the year at $132,000. We still believe that there will be some downward pressure on price here in Dothan, so we think we will see another drop in 2010, maybe even down to $130,000. Inventory is still high, and prices are going to have to come down to clear the inventory.

So, now that you’ve read our predictions, what do you see happening in the Dothan real estate market in 2010? Chime in by commenting below. What challenges do you see as a buyer or seller? Are you planning on buying or selling in 2010?

Discuss.

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

Pending sales right now are up 39% over this same week last year. It is worth noting that on January 5, 2009, the 95 sales in pending status was the lowest total for the entire year.

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