dothanhomesearch.com

By: Charles Woodall


http://www.dothanhomesearch.com

We knew it was coming. Looking back to the end of 2008, the median price for a home in the Dothan area stood at $132,500, down a whopping 1.5% from the most recent peak in 2006. After rising over 25% between 2003 and 2006, a correction had to be forthcoming.

Well, it may be here.

Looking at the 12 month period that just ended on March 31, the median priced Dothan home has fallen to $131,300, a drop of about one percent. While a one percent drop doesn’t sound like much, remember that is a drop for one quarter, compared to the slightly bigger fall over all of last year. If we average that much of a drop for the remainder of 2009, we’re looking at being down around $127,000 by the end of the year. Not terrible mind you, just newsworthy. The average dollars per square foot you can expect to pay for a home in the Dothan area stands at $77.80, down from right at $80 at the end of 2008.

Truth be known, this correction is much needed. The number of homes for sale right now in Dothan has never been higher, which puts significant downward pressure on prices. Until we clear some of this inventory, it is going to be hard for sellers to get prices comparable to recent years.