Montgomery year-end home sales up 12 percent over 2014
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Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, the Montgomery Area residential sales totaled 344 units during December, an increase in sales of 16 percent from the same period last year. Year-to-date sales rose 12 percent over the same period last year. Two more resources to review: Quarterly Report and Annual Report
For all Montgomery area real estate data, click here.
Home sales in Montgomery during December totaled 344 units.
Forecast: Closed transactions during December were 34 units or 11 percent above the Center’s monthly forecast. ACRE’s year-to-date sales forecast through December projected 4,140 closed transactions while the actual sales were 4,338 units, a rise of 5 percent.
Supply: The Montgomery Area housing inventory in December was 2,434 units, a decrease of 6 percent from December 2014. and 26 percent below the month of December peak in 2007 (3,294 units) which represent encouraging news.
There was 7.1 months of housing supply during December 2015, a decrease of 19 percent from the same time last year (8.7). Approximately 6 months of supply is considered a balanced market during December where buyer and seller have equal bargaining power.
December inventory in the Montgomery Area decreased 6.5 percent from the prior month. This direction is consistent with historical data indicating December inventory on average (2010-14) decreases from the month of November by 3.8 percent.
Demand: December residential sales increased 20 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that December sales, on average (2010-14), increase from the month of November 9.3 percent.
Existing single family home sales accounted for 84 percent (unchanged from December 2014) of total sales while 16 percent (up(again from December 2014) was new construction sales.
Pricing: The Montgomery Area median sales price in December was $140,000, up 7 percent from last December ($130,000). The December median sales price also increased 3.7 percent from the prior month. Historical data (2010-14) indicates that the December median sales price typically increase from the month of November by 4.2 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: “Consumers ended the year on an improved note with regard to their income, job security, and overall economic outlook. This more positive consumer sentiment brought the HPSI up a few points, moving the index up for all of 2015,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Brightening economic prospects, if sustained, should stimulate demand for homeownership. However, continuing upward pressure on rental prices and constrained housing supply, particularly for starter homes, may mean prospective first-time homebuyers could face affordability constraints.” For full report click here.
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.
