Montgomery March home sales rise 23 percent over last year
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Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery area residential sales totaled 425 units during March, an increase in sales of 22.8 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 March were 53 units or 14 percent above the center’s monthly forecast. ACRE’s year-to-date sales forecast through March projected 934 closed transactions while the actual sales were 1,045 units, a favorable difference of 11.8 percent.
There were 425 total homes sold in Montgomery during March.
Supply: The Montgomery area housing inventory in March was 2,555 units, a decrease of 12 percent from March 2015, and 25 percent below the month of March peak in 2008 (3,416 units).
There was 6 months of housing supply during March 2016, a decrease of 28 percent from the same time last year (8.4). About 6 months of supply is considered a balanced market during March where buyer and seller have equal bargaining power.
March inventory in the Montgomery area increased 2.4 percent from the prior month. This direction is consistent with historical data indicating March inventory on average (2011-2015) increases from the month of February by 4.3 percent.
Demand: March residential sales increased 25.7 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that March sales, on average (2010-2014), increase from February 24.9 percent.
Existing single family home sales accounted for 89 percent (up from 84 percent during March 2015) of total sales while 10 percent (down from 15 percent during March 2015) was new construction sales.
Pricing: The Montgomery area median sales price in March was $145,000, up 9.8 percent from last March ($132,000). The March median sales price increased 15 percent from the prior month. Historical data (2011-2015) indicates the March median sales price typically increases from February by 0.9 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: “Growing pessimism over the last three months about the direction of the economy seems to be spilling over into home purchase sentiment,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The gap between the share of consumers who think the economy is on the wrong track and the share who think it is on the right track has widened, nearly matching its reading last August, when concerns regarding China and oil prices led to the biggest stock market plunge in years. In turn, we saw dips this month in income growth perceptions, attitudes about the home selling climate, and job confidence, all of which contributed to the lowest Home Purchase Sentiment Index (HPSI) reading in the last year and a half. These declines seem to be at odds with recent news of solid overall job creation, but may reflect weakening economic performance in certain industries.” For the 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.
