Click here to view or print the entire September report compliments of the ACRE Corporate Cabinet.

Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, the Montgomery Area residential sales totaled 431 units in September, an improvement in sales growth of 16 percent from the same period last year. This represents the best sales results for the month of September since 2006. Year-to-date sales through September are up 15 percent from 2014. Two more resources to review market: Quarterly Report and Annual Report

Forecast: Closed transactions in September were 99 units or 30 percent above the Center’s monthly forecast. ACRE’s year-to-date sales forecast through September projected 3,185 closed transactions while the actual sales were 3,363 units, a rise of 5.5 percent.

Home sales continue to climb in Montgomery with September seeing the most (431) since 2006 (450). Median sales price did drop 3.6 percent from the prior year and the prior month in September.

Supply: The Montgomery Area housing inventory in September was 2,848 units, an increase of 4.6 percent from September 2014. and 21.5 percent below the month of September peak in 2007 (3,629 units) which represent encouraging news.

There was 6.6 months of housing supply in September 2015, a favorable retreat of 9.7 percent from the same month a year earlier (7.3 months). Approximately 6.0 months of supply is considered a balanced market during September where buyer and seller have equal bargaining power.

September inventory in the Montgomery Area decreased 3.7 percent from the prior month. This direction is consistent with historical data indicating September inventory on average (2010-14) decreases from the month of August by 1.3 percent.

Demand: September residential sales increased 3.9 percent from the prior month. This direction contrasts with seasonal patterns and historical data indicating that September sales, on average (2010-14), decrease from the month of August 4.3 percent.

Existing single family home sales accounted for 86 percent (down from September 2014) of total sales while 13 percent (down (again from September 2014) were new home sales and 1 percent were condo buyers.

Pricing: The Montgomery Area median sales price in September was $135,000, down 3.6 percent from last September ($140,000). The September median sales price also slipped 3.6 percent from the prior month. Historical data (2010-14) indicates that the September median sales price typically decrease from the month of August by 1.1 percent. Pricing can fluctuate from month-to-month as the sample size of data (closed transactions) is subject to seasonal buying patterns and we recommend contacting a local real estate professional for additional market pricing information.

Industry Perspective: “Our forecast for the year is largely unchanged despite recent market volatility. Fundamentals are positive, suggesting potential for some improvement in the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “While core personal consumption expenditures experienced their weakest gain in more than four years in July, real consumer spending rebounded during the month and August auto sales were stronger than they have been in a decade. Consumers may get an added boost during the year from subdued inflation given the stronger dollar and low oil prices. Overall, we anticipate economic growth of 2.4 percent for 2015, up slightly from 2.1 percent in the prior forecast. Consumer and government spending as well as nonresidential and residential investment are expected to contribute to growth while net exports and inventory investment will likely pose headwinds.” For full report click here.

The average sales price dipped 5 percent in September from the prior year and 4.3 percent from August.

The average days on the market went up above 120 last September but came down favorably to 114 last month.

Total inventory (2,848) remained flat in September from prior years.

The median sales price in September has been up and down over the past decade in Montgomery. The price was down once again by 3.6 percent from last year.

Months of supply is down favorably and considerably since last September and its 2010 peak of 14.9.

Sales increased 3.9 percent from August last month.

Year-to-date sales were up 14.8 percent over last September.

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Bryan Davis is the research/media coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu.

The Montgomery Area Residential Monthly Report is work product developed in conjunction with the Montgomery Association of Realtors to better serve River Region consumers. The Alabama Center for Real Estate monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current available data. Real estate is local and statistics will fluctuate between areas within a city including subdivisions. ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.