This article was originally posted on DothanHomeSearch.com

Ok, that headline is a little misleading. However, some land owners near the proposed Country Crossing development have raised their asking price substantially, anticipating a rush to buy land for off-shoot development that would almost certainly accompany a project of this size.

Since the exact location of the development was announced last month, local land owners are seeing dollar signs. Sellers are hedging their bets it seems that even though the sale of the land for the actual development has not closed and no construction has begun, speculators are going to swoop in and pay a premium price for land in close proximity.

Here are a few examples:

• 15+ acres located on Hwy 231 South just before the Country Crossing site went from just under $600,000 to over $750,000, or $50,000 per acre
• Slightly over seven acres, nearly four miles from the site on Hwy 231, back toward Dothan, listed for over $770,000, or $109,000 per acre
• 2.69 acres across from the National Peanut Festival fairgrounds, which is about two miles from the Country Crossing site, offered for $425,000, or about $160,000 per acre

The price of land restricted to residential development is also going up:

• 55+ acres on Hwy 109 a short distance away went from around $550,000 to almost $1.5 million, or around $27,000 per acre
• 20 acres also on Hwy 109 is listed for just over $500,000, or $25,000 per acre

It will be interesting to see how this all plays out. Watch for an update of the status of the Country Crossing development later this week.

Read our previous posts on Country Crossing here and here.

I just posted this month's real estate sales report over at DothanHomeSearch.com, for those that are interested.

It looks like we may have bottomed out here in this market. Sales have been strong for the last two months and pending sales are up 25%.

Read the full report HERE

This article was originally posted on DothanHomeSearch.com

At the end of each quarter, we look at some Dothan real estate market statistics that don’t fit well into one of our monthly reports. That is not to diminish their importance however.

Median Price

Median price can vary significantly from month-to-month, so we compare quarters to help smooth out the bumps. Median price is used instead of average price because it reflects the midpoint, or the price where half the homes sold at a higher price and the other half sold at a lower price.

The median price from the Dothan MLS for the first quarter was just over $134,000, up from around $128,000 in the 4th quarter of 2007. From a peak in the third quarter of 2006, the median price of homes sold in Dothan is down 8.6%.

Absorption Rate

Absorption rate is a measure of how well the market is clearing, or absorbing, inventory (listings). The absorption rate for March was just over 10 months, down from nearly 12 months in January. In other words, if no more listings came on the market, it would take about 10 months to sell everything that is currently listed.

All signs recently seem to suggest that the Dothan real estate market is sound and active. Spring is typically a busy time, so hopefully these latest developments will continue move the market forward.

I just posted an update on my blog, dothanhomesearch.com.

I am trying to provide information that is or could be useful to those interested in real estate. If you would like to see a topic covered or some other feature on the website, please feel free to let me know.

And leave a comment while your there!

This article was originally posted on DothanHomeSearch.com by Judy Spears

The number of residential new construction permits issued in April was up significantly from previous months. The total of 37 permits issued is the most in one month since March of last year. Here is the trend over the last twelve months.

Inventory of new construction homes on the market continues to edge down slightly, with 224 listed in the Dothan MLS as of this morning. Is this a sign of a rebound, or are builders building because they have to build to stay in business? We will see.

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.

This article was originally posted on DothanHomeSearch.com

Yes, I realize this report is about a week or so late. Fortunately, there are a good number of people buying and selling houses right now in Dothan, so we are swamped. So, apologies for being late and here is this month’s inventory report.

Inventory

Inventory was up just over 5% in April to 968 single family units on the market. On its face, that looks like a significant change. Inventory typically rises in the spring, so we’ll have to wait a month or two to see if inventory is going to start another upward move. From what I have read out on the web from other markets, inventory is holding steady or even falling in some areas. I don’t look for this to become a trend.

Absorption rate

The absorption rate, or the number of months it would take to clear the market of inventory if no more houses were listed for sale, is down to 9.49 months, the lowest level since last September. I use a three month average of solds to figure the absorption rate. Using a three month average helps smooth out the ups and downs of the market, and gives a more accurate picture of what is happening.

Inventory and absorption rates can vary between different areas around Dothan. If you would like to see these numbers for a particular area, drop us an email or leave a comment below with your request!