Dothan Real Estate Market - July Foreclosure Report
July 30th, 2008 - Categories: Dothan area Real Estate Market information
By: Charles Woodall
Managing Broker
http://www.dothanhomesearch.com
According to RealtyTrac (via the Birmingham Business Journal), foreclosures in the state of Alabama were up 22% in June. However, RealtyTrac’s second Quarter report showed numbers up 7.59% from the first quarter, but down slightly from the second quarter of 2007. According to the release, there were 683 homes in some state of the foreclosure process, and over 1100 already foreclosured homes up for sale across the state.
Here in the Dothan area, RealtyTrac only lists 15 foreclosed properties, which is really an insignificant number. Anyway you look at it, the Dothan real estate market is not experiencing any increase in foreclosures at this time.
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Congress locks out ten percent of Dothan home buyers
July 28th, 2008 - Categories: Buying a home in the Dothan area, Real Estate News, Selling a home in the Dothan area
By: Charles Woodall
Managing Broker
http://www.dothanhomesearch.com
The U.S. Senate passed HR 3221 Saturday morning, and unless President Bush changes his mind again, he will sign what Congress has named the Housing and Economic Recovery Act of 2008 into law sometime this week.
Among the many problems solved addressed with this legislation, one particular provision will likely have an big impact on the Dothan real estate market. In Section 2113 there is a provision that prohibits FHA from insuring loans unless the buyer puts down at least 3.5% of the appraised value. This provision effectively eliminates down payment assistance programs such as Ameridream and Nehemiah, which have been used by home buyers and sellers to put deals together for a number of years.
Why will this particular item have a profound impact here in the Dothan real estate market? Because these programs have meant the difference between being able to buy or not for hundreds of Dothan residents over the last few years. Through the end of June, there have been 632 homes sold in the Dothan area this year, according to the Dothan MLS. Of these, 145 used FHA financing. While we do not know the exact number out of the 145 that used a down payment assistance program, a couple of mortgage folks I talked confirmed my suspicions and indicated that the vast majority of FHA loans they have processed this year have. Even if the number is as low as 50%, that is around 70 buyers that would likely have been unable to buy. With the passage of this legislation, the Federal Government has effectively taken 10% of our home buyers out of the market.
What does this mean to home sellers? If your home is priced between $60,000 and $150,000, which is the likely price range for FHA buyers, then you will be losing about 10% of your buyer pool effective October 1.
An in-depth look at all the aspects of this legislation is needed in order to weight benefits versus costs. At some point I will share some of these and how they will effect the Dothan real estate market. At first glance however, this little provision will have the most immediate impact, and it’s not going to be positive.
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Monday Market Snapshot - July 28, 2008
July 28th, 2008 - Categories: Dothan area Real Estate Market information
By: Charles Woodall
Managing Broker
http://www.dothanhomesearch.com
Monday Market Snapshot - July 28, 2008
| Homes on market | 985 | UP |
|---|---|---|
| Median price | $169,900 | steady |
| Avg price per sq ft | $95.87 | DOWN |
| Avg days on market | 158 | down |
| Least expensive listing | $9,900 | same |
| Most expensive listing | $2,500,000 | same |
| Pending sales | 150 | UP |
| Sold - last 7 days | 16 | DOWN |
Coming later this week we’ll have an update on foreclosures, information on new Dothan school zones, and the end of down payment assistance programs for Dothan home buyers.
Homes on the market stat is the total of single family residential properties currently listed for sale. All statistical information is from the Dothan Multiple Listing Service (Dothan MLS) and is deemed reliable, but not guaranteed.
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Dothan Real Estate Steady Compared to Most of Alabama
July 25th, 2008 - Categories: Dothan area Real Estate Market information
By: Charles Woodall
Managing Broker
http://www.dothanhomesearch.com
The Dothan area real estate market was the only area in Alabama to show positive sales growth in June, data from the Alabama Center for Real Estate shows. According to a story in The Dothan Eagle, Dothan was the only market in Alabama to show an increase in June, compared to last year. As posted earlier, home sales here are down about 12% through the first half of the year, compared to the same period in 2007.
So why is this market seemingly stronger than many others around the state? A couple of reasons. First, Dothan has experienced a population boom over the last several years. Second, our local economy is diverse and not reliant on any one industry for growth. Another factor might be affordability. A median price of around $135,000 puts home ownership within reach of many Dothan area residents.
Keep in mind that we do not use statistics from ACRE in our reports here. We use data from the Dothan MLS, which will not include most for sale by owner properties and some new construction, but is timely and overall very representative of the Dothan real estate market as a whole.
Why do you think the Dothan real estate market is not following the trend of sharply declining sales similar to other areas around Alabama and the nation? Let us know by commenting below.
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The Southern Boundary of the United States
July 25th, 2008 - Categories: Historic Markers around Dothan, Just for Fun
By: Charles Woodall
Managing Broker
http://www.dothanhomesearch.com
This historic marker is located just south of Dothan at the Florida State line, erected on the east side of the highway.
From the Historic Chattahoochee Commission website:
Southern Boundary of the United States, 1795-1819
Location: Located on Highway 231 at Ellicott’s Crossing.
Marker Dedication or Erection Date: October 27, 1995
Marker Text:
On October 27, 1795, the United States concluded the Treaty of San Lorenzo with Spain, establishing 31 north latitude as the boundary between its southern territory and West Florida. Despite Spanish delays, commissions representing the two countries began the eastward survey at the Mississippi River. They passed this point in August 1799, and continued to the Chattahoochee River. They later abandoned the boundary survey east of the river due to persistent Indian attacks. The 381 mile survey became known as Ellicott’s line in reference to Andrew Ellicott, surveyor for the U.S. commission.
Erected by the Houston County Commission, Dothan Landmarks Foundation, and the Historic Chattahoochee Commission, 1995.
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Three ways to avoid a hassle-free real estate closing
July 23rd, 2008 - Categories: Buying a home in the Dothan area
By: Charles Woodall
Managing Broker
http://www.dothanhomesearch.com
Even in the smoothest transactions, closing is stressful for home buyers. You are signing dozens of documents, most of which you are trusting the closing attorney and not asking what you are signing. Add to that the fact that you are likely making the biggest, single financial transaction of your life.
For the folks out there that feed off of stress, the Type A personalities among us, here are three ways (plus a bonus!) to help increase the level of stress at your closing.
Poor choice of mortgage provider
By all means, go online to your favorite search engine and type “low cost mortgages” or something similar in the search box, then surf on over to AllICareAboutIsMyRate.com to get the “best deal” on your new mortgage. It won’t happen every time, but we see the vast majority of such endeavors end in misery for the buyer. Everything from bouncing rates and fees to asking for the same documentation five different times. If you are really interested in weeks of stress and confusion, don’t use a local mortgage broker or a reputable online one.
Buy a car a couple of weeks before closing
You may be approved and ready to close, but your mortgage provider is going to check your credit again a couple of days before closing. Any new line of credit, such as financing a car, will likely change your credit score enough to cause questions to be asked by the mortgage company. So be ready to explain to your lender how you are going to pay for that new boat AND make your new house payment.
Don’t check the repairs
You will likely (or you should) have the home you are buying professionally inspected. You should have reserved the right in the sales contract to request certain repairs, based on this inspection. Once you submit your list of repairs to the seller, don’t worry about checking to make sure they are done. You’ll be able to determine that at your walk-thru, which is usually the day before closing. After all, 24 hours is probably plenty of time to get that piece of damaged drywall repaired and painted, or have a contractor come back to fix something they did a poor job on.
BONUS ROUND - Don’t ask for a survey
If the home you are buying is in a platted subdivision, there is no need for a survey, right? Except that things change. Fences and storage buildings are built and driveways and parking pads are expanded, and it is not uncommon for encroachments to present themselves after closing. So while this one might not cause problems at closing, the problems down the road will be enough to cause you some stress.
Keep these ideas in mind as you think about your closing. If you have had an experience at closing of your home, share it with us by commenting below.
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Dothan Real Estate Market - July Inventory Report
July 22nd, 2008 - Categories: Dothan area Real Estate Market information, Inside the numbers
By: Charles Woodall
Managing Broker
http://www.dothanhomesearch.com
The number of homes for sale in and around Dothan fell back last month from the all-time high in May. As of July 1, there were 954 single family homes on the market. However, if you read yesterday’s real estate market update, you know that we are back up over 970 this week.
Inventory
We seem to be stuck, at least for the time being, at between 950 and 975 homes on the market, which again means we are in a strong buyers market. It is hard to imagine much fluctuation in these numbers in the near future.
Absorption rate
The absorption rate for July is down again to 8.59 months of inventory. What this means is that it would take about eight and a half months to sell every home currently for sale in Dothan at the current rate of sales, if no new listings came on the market. The downward trend is continuing, and that is a good sign that the Dothan real estate market is healthy.
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!
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Monday Market Snapshot - July 21, 2008
July 21st, 2008 - Categories: Dothan area Real Estate Market information
By: Charles Woodall
Managing Broker
http://www.dothanhomesearch.com
Monday Market Snapshot - July 21, 2008
| Homes on market | 973 | ↑ |
|---|---|---|
| Median price | $169,900 | ↓ |
| Avg price per sq ft | $96.04 | ↓ |
| Avg days on market | 159 | ↑ |
| Least expensive listing | $9,900 | ↓ |
| Most expensive listing | $2,500,000 | unch |
| Pending sales | 142 | ↓ |
| Sold - last 7 days | 18 | ↑ |
Coming later this week we’ll have the July Inventory report, as well as a look at the new proposed school zones for Dothan.
Homes on the market stat is the total of single family residential properties currently listed for sale. All statistical information is from the Dothan Multiple Listing Service (Dothan MLS) and is deemed reliable, but not guaranteed.
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Day Trips from Dothan - Chattahoochee State Park
July 18th, 2008 - Categories: Day Trips from Dothan
By: Charles Woodall
Managing Broker
http://www.dothanhomesearch.com
My son and I had the opportunity to visit Chattahoochee State Park on a church outing a few weeks back. Take a minute and read about this park just a short drive from Dothan.
Chattahoochee State Park
Location – southeastern Houston County, right on the Chattahoochee River and the Florida state line.
Drive time from Dothan – around 30–40 minutes from just about anywhere around town
Cost – $2 per person, $1 for kids and seniors. $2 per person for fishing, kids 12 and under free. Camping and RV hook-up available, as well as a small charge for horses
Amenities – Swimming and fishing, lots of picnic and play areas
Best advice – if you go during the summer, take some bug spray. Watch out for poison ivy!
Website – Houston County Parks – Chattahoochee
Built in the 1930’s by the Civilian Conservation Corps, Chattahoochee State Park contains nearly 600 acres of south Alabama nature at its best. Despite the name, the park is now maintained by Houston County, which has performed several upgrades to the park, including an hunting area for the handicapped. The twenty acre lake was also restocked after the county took it over. CC Pond, as my dad used to call it, has in the past been a great fishing spot. The Alabama State record for Shell Cracker was caught in the lake back in 1962. The park includes primitive camping areas, a RV camping site, wildflower areas, and a 20 area lake. The park also has a designated horse trailer parking area, picnic areas, swimming, fishing as well as the hiking and horseback trails.
There are many remnants of the long abandoned CCC camp still around, including a fireplace, a flag pole area, goldfish pond, and other features. The history of the Civilian Conservation Corps, began in the early 1930’s as part of President Roosevelt’s plan to put young men to work during the depression, is an interesting one. If anyone knows of any other projects the CCC had in our area, I would be very interested in hearing about them. Let us all know by commenting below!
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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
Managing Broker
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 I’ll 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 – today’s 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!