Montgomery home sales begin 2017 with faster pace than 2016

Montgomery home sales begin 2017 with faster pace than 2016
The Montgomery-area median sales price in January was $148,500, up 16 percent from January 2016. (Ed Willcoxon/ACRE)

Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 307 units during January, an increase in sales of 9 percent from January 2016’s total of 282 units. Another resource to review is the Annual Report.

For all Montgomery-area real estate data, click here.

Montgomery home sales in January increased 9 percent over last January.

Forecast: Closed transactions during January were 50 units or 19 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through January projected 257 closed transactions, while the actual sales were 307 units.

Supply: The Montgomery area housing inventory in January was 2,160 units, a decrease of 13 percent from January 2016 and 33 percent below the month-of-January peak in 2008 (3,229 units).

There were 7 months of housing supply during January, a decrease of 20 percent from the same time in 2016. About 6 months of supply is considered a balanced market during January, with buyer and seller having equal bargaining power.

January inventory in the Montgomery area increased 3.2 percent from the prior month. This direction contrasts with historical data indicating January inventory on average (2012-2016) decreases from December by 0.4 percent.

Demand: January residential sales decreased 0.3 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that January sales, on average (2012-2016), decrease from December by 16 percent.

Existing single-family home sales accounted for 82 percent of total sales, while new construction sales made up 17 percent.

Pricing: The Montgomery-area median sales price in January was $148,500, up 16 percent from January 2016 ($128,500). The median sales price increased 0.5 percent from the prior month. Historical data (2012-2016) indicate the January median sales price typically decreases from December by 11.1 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.

Industry perspective: “We expect housing to remain resilient and continue its recovery in 2017, with affordability standing out as the industry’s greatest obstacle, particularly for first-time homeowners,” said Fannie Mae Chief Economist Doug Duncan. “Demographic factors, however, are positive. Our research shows that older millennials have begun to buy homes and close the homeownership attainment gap with their predecessors.”

Click here to generate more graphs from the Montgomery January Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Montgomery Area Residential Monthly Report is developed in conjunction with the Montgomery Area Association of Realtors to better serve River Region consumers.

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