Click here to view or print the entire October 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 345 units during October, a decrease in sales growth of 7 percent from the same period last year. Year-to-date sales on the other hand rose 12.4 percent over the same period last year. Two more resources to review: Quarterly Report and Annual Report

Forecast: Closed transactions in October were two units or 0.6 percent above the Center’s monthly forecast. ACRE’s year-to-date sales forecast through October projected 3,528 closed transactions while the actual sales were 3,708 units, a rise of 5 percent.

October sales in Montgomery peaked at 492 during 2006 and dropped below 400 units in 2007. Sales have been slowly climbing from the low of 200 units (2010) back to 345 during October.

Supply: The Montgomery Area housing inventory in October was 2,705 units, an increase of 1 percent from October 2014. and 24.4 percent below the month of October peak in 2007 (3,580 units) which represent encouraging news.

There was 7.8 months of housing supply during October 2015, a slight increase from the same month a year earlier (7.2 months). Approximately 6.0 months of supply is considered a balanced market during October where buyer and seller have equal bargaining power.

October inventory in the Montgomery Area decreased 5 percent from the prior month. This direction is consistent with historical data indicating October inventory on average (2010-14) decreases from the month of September by 2.2 percent.

Demand: October residential sales decreased 20 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that October sales, on average (2010-14), decrease from the month of September 5 percent.

Existing single family home sales accounted for 88 percent (up from October 2014) of total sales while 11 percent (down (again from October 2014) were new home sales and 1 percent were condo buyers.

Pricing: The Montgomery Area median sales price in October was $126,000, down 13 percent from last October ($144,950). The September median sales price also slipped 6.7 percent from the prior month. Historical data (2010-14) indicates that the October median sales price typically increase from the month of September by 0.3 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: “Despite recent headwinds, which likely will slow economic growth compared to the first half of 2015, we see positive trends for consumer spending and housing heading into the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “Strong home price gains should help drive an increase in household net worth again in the third quarter and, combined with low gasoline prices and mortgage rates, should support strong consumer spending throughout the rest of the year.” To read the full report, click here. 

The average sales price for Montgomery homes during October fell 7 percent in 2015.

On average, Montgomery homes spent six fewer days on the market during October compared to last year.

Inventory has held steady over the past five years, rising slightly by 1 percent during October 2015.

The Montgomery October median sales price fell 13 percent year-over-year.

The 7.8 months of supply on the market during October was more favorable than the peak of 15.9 in 2010.

Year-to-date sales during October in Montgomery rose 12 percent over last year.

Sales dropped by 20 percent from September to October during 2015.

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.