2008 Dothan real estate market predictions - Mid-year update
July 16th, 2008 - Categories: Dothan area Real Estate Market information, Real Estate News
By: Charles Woodall
http://www.dothanhomesearch.com
Back in late December we looked at some predictions for what the Dothan real estate market may do in 2008. Since the year is halfway gone, now is a good time to look to see how our predictions are faring.
Home sales
Prediction down 10% from 2007
Actual year-to-date down 12.4% in units, 9.1% in volume
Nothing surprising about this stat. Pending sales are strong, so Ill stick to this prediction.
Homes on the market
Prediction remain steady between 850 950 units
Actual inventory today is 956 single family homes
I may have underestimated this one by a bit. Inventory in other areas of the country is steady to falling, so I am going to revise my prediction and say that the number of homes for sale in the Dothan area will hover between 920 and 980 for the rest of 2008.
Mortgage rates
Prediction steady around 6% with less than 0.5% fluctuation
Actual todays rates are around 6.25%
The only change I will make here is to say that there is a far greater likelihood of rates being closer to 6.5% at the end of the year than under 6%.
Foreclosures
Prediction upward trend
Actual steady to slightly up
Up until May, the number of homes in foreclosure in Alabama had dropped significantly. Then June came and they jumped 22%. The upward trend will likely continue, if for no other reason than the overall weak economy.
New Construction
Prediction housing starts in Dothan down
Actual housing starts in Dothan down
We nailed this one. There were 178 residential new construction permits issued in the first six months of 2007, compared to 133 so far in 2008.
Median Price
Prediction down
Actual no change
The median price of homes sold in the Dothan area in 2007 was $135,000, and the median price so far in 2008 is exactly the same. I still think we will end the year with a slightly lower median.
The overall Dothan real estate market is sound, especially when compared to some other markets around the country. Expect the remainder of 2008 to be much the same as the first half.
What are your thoughts on the real estate market here in the Dothan area? What do you see happening in the future? Chime in by commenting below!
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