Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 491 units during May, an increase in sales of 2.1 percent from May 2017’s total of 481 units. Another resource to review is the Annual Report.
For all Montgomery-area real estate data, click here.
Forecast: Closed transactions during May were 10.8 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through May projected 1,848 closed transactions, while the actual sales were 1,815 units.
Supply: The Montgomery-area housing inventory in May was 2,689 units, an increase of 21.1 percent from May 2017 and 24 percent below the month-of-May peak in 2008 (3,537 units).
There was 5.5 months of housing supply during May, an increase of 18.6 percent from the same time in 2017. About 6 months of supply is considered a balanced market, with buyer and seller having equal bargaining power.
May inventory in the Montgomery area increased 19.6 percent from the prior month. This direction is consistent with historical data indicating May inventory on average (2013-2017) increases from April by 1.4 percent.
Demand: May residential sales increased 24.6 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that May sales, on average (2013-2017), increase from April by 17.2 percent.
Pricing: The Montgomery-area median sales price in May was $143,450, down 6.5 percent from May 2017 ($153,500). The median sales price decreased 7.5 percent from the prior month. Historical data (2013-2017) indicate the May median sales price typically increases from March by 9.3 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: In both Alabama and the United States, the spring home-buying season has been affected greatly by very low inventory levels. April residential listings decreased 10 percent in the state and decreased 6 percent nationwide from one year ago. Residential sales in Alabama, however, increased 16 percent from one year ago, which is impressive considering the 10 percent drop in inventory. Home price appreciation cooled off somewhat as the statewide median sales price increased 2 percent from one year ago, while it increased 7 percent during the first quarter of the year. Going forward, home sales prices are expected to continue their upward climb during the summer as inventory levels are likely to repeat the declines that were seen during the spring.
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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.