Published On: 06.08.16 | 

By: Bryan Davis

Montgomery April home sales up 2 percent over 2015

Montgomery home sales and median sales price in April were up from a year earlier. (File)

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

Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 349 units during April, an increase in sales of 2 percent from the same period last year. Another resource to review is the Annual Report.

For all Montgomery-area real estate data, click here. 

Forecast: Closed transactions during April were 18 units or 5 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through April projected 1,301 closed transactions while the actual sales were 1,394 units, a favorable difference of 7 percent.

Montgomery year-to-date home sales rose 15.7 percent in April compared to the same period last year.

Montgomery year-to-date home sales rose 15.7 percent in April compared to the same period last year.

Supply: The Montgomery area housing inventory in April was 2,543 units, a decrease of 14 percent from April 2015, and 28 percent below the month of April peak in 2008 (3,537 units).

There was 7.3 months of housing supply during April 2016, a decrease of 16 percent from the same time last year (8.7 months). About 6 months of supply is considered a balanced market during April, with buyer and seller having equal bargaining power.

April inventory in the Montgomery area decreased 0.5 percent from the prior month. This direction contrasts with historical data indicating April inventory on average (2011-2015) increases from March by 4.4 percent.

Demand: April residential sales decreased 18 percent from the prior month. This direction contrasts with seasonal patterns and historical data indicating that April sales, on average (2010-2014), increase from March 4 percent.

Existing single-family home sales accounted for 93 percent of total sales (up from 88 percent during April 2015) while 6 percent was new construction sales (down from 11 percent during April 2015).

Pricing: The Montgomery-area median sales price in April was $134,000, up 1.5 percent from last April ($132,000). The median sales price decreased 7.6 percent from the prior month. Historical data (2011-2015) indicates the April median sales price typically decreases from March by 1 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.

Industry perspective: “We can partially attribute the sizable gain in April in home-selling optimism both to a correction for last month’s unexpected dip and to typical seasonal strength in housing activity in the spring and summer,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Even after accounting for these factors, continued tight housing supply has led to renewed strength in home price appreciation, making selling a home a more attractive prospect this year in particular. This improved sentiment could provide an extra boost of much-needed supply for the spring selling season.” For the entire report, click here.

The Montgomery Area Residential Monthly Report is developed in conjunction with the Montgomery Association of Realtors to better serve River Region consumers.