36345
Dothan, Alabama

The 36345 ZIP code in Dothan shows clear cooling with the median sale price at $282,000, down 11.5% year-over-year—a contraction that exceeds typical seasonal adjustments. Homes are averaging 65.5 days on market, indicating moderating demand despite being within normal range for secondary Alabama markets. Only 13% of sales close above list price, confirming limited competitive pressure and suggesting sellers hold minimal pricing power in current negotiations.

This environment favors patient buyers with financing locked in who can exploit the negative price trajectory without facing bidding competition. Cash investors targeting single-family rentals should find motivated sellers, though the 11.5% decline demands careful attention to further depreciation risk before deploying capital. Sellers face unfavorable conditions and should consider delaying listings unless relocation or financial circumstances force immediate action, as holding costs may prove less expensive than accepting current depressed valuations.

The PropIQ score of 55 signals continued caution, indicating this market has not yet found a price floor. The combination of declining values and modest absorption rates suggests further softening through Q2 2026 unless interest rate changes or local employment data shifts dramatically. Buyers should monitor whether days-on-market extends beyond 75 days, which would confirm deepening distress and create stronger negotiating positions on already-reduced inventory.