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Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery area residential sales totaled 338 units during February, an increase in sales of 26 percent from the same period last year. Two more resources to review: Quarterly Report and Annual Report
For all Montgomery area real estate data, click here.
Forecast: Closed transactions during February were 44 units or 14 percent above the center’s monthly forecast. ACRE’s year-to-date sales forecast through February projected 562 closed transactions while the actual sales were 620 units, a favorable difference of 10 percent.
Supply: The Montgomery area housing inventory in February was 2,496 units, a decrease of 8.5 percent from February 2015, and 26 percent below the month of February peak in 2008 (3,391 units).
There was 7.4 months of housing supply during February 2016, a decrease of 27 percent from the same time last year (10.9). About 6 months of supply is considered a balanced market during February where buyer and seller have equal bargaining power.
February inventory in the Montgomery area increased 1 percent from the prior month. This direction is consistent with historical data indicating February inventory on average (2011-15) increases from the month of January by 1.6 percent.
Demand: February residential sales decreased 20 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that February sales, on average (2010-14), increase from January 13 percent.
Existing single family home sales accounted for 84 percent (down from 90 during February 2015) of total sales while 16 percent (up from 10 percent during February 2015) was new construction sales.
Pricing: The Montgomery area median sales price in February was $125,950, down 0.5 percent from last February ($126,600). The February median sales price decreased 2 percent from the prior month. Historical data (2011-15) indicates the February median sales price typically increases from January by 8 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. We recommend contacting a local real estate professional for additional market pricing information.
Industry Perspective: “Our February results show the most modest consumer home price expectations since late 2012,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “For consumers who think it’s a bad time to buy a home, high home prices have been an increasingly contributing factor. A slower pace of home price appreciation may provide some relief for potential homebuyers, especially first-time buyers who couldn’t reap the benefits of selling a home at high prices to buy another one.” For the full story, 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.