Top 5 Markets for Year-to-Date Home Price Appreciation
Topics: Research, Residential Real Estate
Markets: Athens (Limestone County), Baldwin County - All, Baldwin County - Condo Only, Birmingham Metro, Calhoun County, Cherokee County
The Alabama Center for Real Estate created the following rankings based on year-to-date median price appreciation through September.
1. Morgan County - 13.8 percent
2. Gadsden - 12.8 percent
3. Phenix City - 10.5 percent
4. Athens - 8.9 percent
5. Calhoun County - 8.3 percent
Statewide Average: 4.7 percent
National Average: 5 percent
Morgan County: Home values are on the rise in the Decatur area as it led all markets in the state in year-to-date (YTD) median price appreciation through September. Median sales prices increased 13.8 percent YTD from $123,872 in 2017 to $140,922 currently. Inventory shortages played a significant role in driving prices upwards throughout 2018. Residential inventory in the area was down 31.6 percent during September, while the statewide inventory dropped 8.9 percent. Other markets in the north Alabama region experiencing major year-over-year inventory declines include: Huntsville down 25.3 percent, the Shoals Area down 6.8 percent, Athens down 22.5 percent, Cherokee County down 9.7 percent, Cullman down 10.9 percent, and Marshall County down 20 percent. With rising prices and declining inventory in the Decatur area, it is not surprising to see YTD average days on market drop from 103 in 2017 to 82 in 2018. The market currently has 3.4 months of supply.
Gadsden: We’re staying in the north Alabama region for Alabama’s second fastest rising home values through September. Median sales price in the Gadsden area increased 12.8 percent YTD from $110,422 to $124,503. Although September sales dropped 27.4 from one year ago, YTD sales are up 0.3 percent from 2017. Going against statewide and regional trends, inventory in the Gadsden area increased 3.4 percent year-over-year. Of Alabama’s 12 metropolitan areas, Gadsden, Baldwin County, Auburn/Opelika, and Phenix city were the only markets to experience inventory gains during September. Homes in the area are selling 24 days faster as YTD average days on market dropped from 135 to 111. The market currently has 8.4 months of supply.
Phenix City: The only market outside of the north Alabama region to make the top five price appreciation rankings was Phenix City where the YTD median sales price increased 10.5 percent from $141,889 to $156,717. Phenix City also went against statewide inventory trends as residential listings increased 4 percent year-over-year during September. Residential sales improved 2.8 percent YTD from 865 during 2017 to 889 currently. Homes in the area selling 9 days faster than one year ago as YTD average days on market dropped from 120 to 111. The market currently has 5.3 months of supply.
Calhoun County: Alabama’s fourth-fastest rising home values are found in the Anniston area where the YTD median sales price increased 9.4 percent from $119,732 to $131,006. Mirroring statewide trends, residential listings dropped 6.6 percent from one year ago. Total residential sales increased 1.8 percent YTD from 1,267 in 2017 to 1,289 currently. Homes are selling 23 days faster than last year as YTD average days on market decreased from 108 to 85. The market currently has 5.4 months of supply.
Athens: We’re heading back to the northern region of the state for our fifth-fastest rising home prices. The year-to-date median sales price in Athens increased 8.9 percent from $185,737 to $202,282. Mirroring regional and statewide trends, residential inventory in the area is down significantly as it fell 22.5 percent from one year ago. Demand for housing in the area remains strong as total sales increased 10.9 percent YTD from 1,277 in 2017 to 1,416 currently. Homes in the area are selling 29 days faster than one year ago as YTD average days on market dropped from 92 to 63. The market currently has 2.9 months of supply.
To view year-to-date data for all Alabama markets, see pages 4-8 of ACRE’s statewide report.