Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 421 units during June, a decrease in sales of 1.6 percent from June 2016’s total of 428 units. Year to date, sales are up 1.3 percent from the same period of 2016. Another resource to review is the Annual Report.
For all Montgomery-area real estate data, click here.
Forecast: Closed transactions during June were 20 units or 5 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through June projected 2,039 closed transactions, while the actual sales were 2,211 units.
Supply: The Montgomery area housing inventory in June was 2,232 units, a decrease of 16 percent from June 2016 and 36 percent below the month-of-June peak in 2008 (3,493 units).
There were 5.3 months of housing supply during June, a decrease of 14.7 percent from the same time in 2016. About 6 months of supply is considered a balanced market during June, with buyer and seller having equal bargaining power.
June inventory in the Montgomery area increased 0.5 percent from the prior month. This direction is consistent with historical data indicating June inventory on average (2012-2016) increases from May by 0.7 percent.
Demand: June residential sales decreased 12.5 percent from the prior month. This direction contrasts with seasonal patterns and historical data indicating that June sales, on average (2012-2016), increase from May by 3.2 percent.
Existing single-family home sales accounted for 86 percent of total sales, while new construction sales made up 13 percent.
Pricing: The Montgomery-area median sales price in June was $158,868, up 5.5 percent from June 2016 ($150,637). The median sales price increased 3.5 percent from the prior month. Historical data (2012-2016) indicate the June median sales price typically decreases from May by 16.8 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: “While second-quarter growth is poised to rebound, we expect growth to moderate through the remainder of 2017. Consumer spending, traditionally the largest contributor to economic growth, is sluggish and is lagging positive consumer sentiment and solid hiring,” said Fannie Mae Chief Economist Doug Duncan. “While labor market slack continues to diminish, wage growth is not accelerating and inflation has moved further below the Fed’s target. These conditions support our call that the Fed will continue gradual monetary policy normalization, announce its balance sheet tapering policy in September, and wait until December for additional data, especially on inflation, before raising the fed funds rate for the third time this year.”
Click here to generate more graphs from the Montgomery June Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.