Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 396 units during July, an increase in sales of 5 percent from July 2016’s total of 377 units. Year to date, sales are up 1.9 percent from the same period of 2016. Another resource to review is the Annual Report.
Forecast: Closed transactions during July were 12 units or 3 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through July projected 2,447 closed transactions, while the actual sales were 2,607 units.
Supply: The Montgomery area housing inventory in July was 2,271 units, a decrease of 13.7 percent from July 2016 and 36 percent below the month-of-July peak in 2008 (3,546 units).
There were 5.7 months of housing supply during July, a decrease of 17.9 percent from the same time in 2016. About 6 months of supply is considered a balanced market during July, with buyer and seller having equal bargaining power.
July inventory in the Montgomery area increased 1.7 percent from the prior month. This direction contrasts with historical data indicating July inventory on average (2012-2016) decreases from June by 0.6 percent.
Demand: July residential sales decreased 5.9 percent from the prior month. This direction contrasts with seasonal patterns and historical data indicating that July sales, on average (2012-2016), increase from June by 2.7 percent.
Existing single-family home sales accounted for 88 percent of total sales, while new construction sales made up 11 percent and condos made up 1 percent.
Pricing: The Montgomery-area median sales price in July was $152,450, down 4.7 percent from July 2016 ($160,000). The median sales price decreased 4 percent from the prior month. Historical data (2012-2016) indicate the July median sales price typically decreases from June by 0.1 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 are keeping our full-year economic growth outlook at 2 percent as risks to our forecast are roughly balanced,” said Fannie Mae Chief Economist Doug Duncan. “On the upside, consumer spending growth might not moderate as much as we have accounted for in our forecast. A build-up in inventory also should be positive for growth this quarter, and nonresidential investment in structures will likely continue to improve as oil prices stabilize.”