Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 481 units during May, an increase in sales of 34 percent from May 2016’s total of 360 units. Another resource to review is the Annual Report.
For all Montgomery-area real estate data, click here.
Forecast: Closed transactions during May were 92 units or 23 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through May projected 1,638 closed transactions, while the actual sales were 1,790 units.
Supply: The Montgomery area housing inventory in May was 2,221 units, a decrease of 15 percent from May 2016 and 37 percent below the month-of-May peak in 2008 (3,537 units).
There were 4.6 months of housing supply during May, a decrease of 36 percent from the same time in 2016. About 6 months of supply is considered a balanced market during May, with buyer and seller having equal bargaining power.
May inventory in the Montgomery area increased 2 percent from the prior month. This direction is consistent with historical data indicating May inventory on average (2012-2016) increases from April by 4 percent.
Demand: May residential sales increased 27 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that May sales, on average (2012-2016), increase from April by 12.5 percent.
Existing single-family home sales accounted for 85 percent of total sales, while new construction sales made up 14 percent.
Pricing: The Montgomery-area median sales price in May was $153,500, down 0.6 percent from May 2016 ($154,500). The median sales price decreased 0.6 percent from the prior month. Historical data (2012-2016) indicate the May median sales price typically increases from April by 7.7 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: “Once again, our full-year growth forecast remains intact as the economy grinds along, with the prospect of material policy changes appearing to be delayed,” said Fannie Mae Chief Economist Doug Duncan. “We expect consumer spending to resume its role as the biggest driver of growth in the second quarter amid improvements in the labor market. Positive demographic factors should continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial homeownership rates. However, the tight supply of homes for sale continues to act as both a boon to home prices and an impediment to affordability.”
Click here to generate more graphs from the Montgomery May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.