Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 378 units during April, an increase in sales of 8 percent from April 2016’s total of 349 units. Another resource to review is the Annual Report.
For all Montgomery-area real estate data, click here.
Forecast: Closed transactions during April were 29 units or 8 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through April projected 1,249 closed transactions, while the actual sales were 1,309 units.
Supply: The Montgomery area housing inventory in April was 2,262 units, a decrease of 11 percent from April 2016 and 34 percent below the month-of-April peak in 2008 (3,442 units).
There were 6 months of housing supply during April, a decrease of 18 percent from the same time in 2016. About 6 months of supply is considered a balanced market during April, with buyer and seller having equal bargaining power.
April inventory in the Montgomery area increased 1 percent from the prior month. This direction is consistent with historical data indicating April inventory on average (2012-2016) increases from March by 4 percent.
Demand: April residential sales increased 3 percent from the prior month. This direction contrasts with seasonal patterns and historical data indicating that April sales, on average (2012-2016), decrease from March by 3 percent.
Existing single-family home sales accounted for 84 percent of total sales, while new construction sales made up 15 percent.
Pricing: The Montgomery-area median sales price in April was $154,500, up 15 percent from April 2016 ($134,000). The median sales price increased 10 percent from the prior month. Historical data (2012-2016) indicate the April median sales price typically decreases from March by 4 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: “The Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month. This is aligned with our market forecast of about 3 percent sales growth in 2017,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high. On balance, housing continues on a gradual growth track.”
Click here to generate more graphs from the Montgomery April Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.