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 399 units during August, a decrease in sales of 4 percent from the same month last year. Year-to-date sales increased 1 percent from the same period of 2015. Another resource to review is the Annual Report.

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

Year-to-date residential sales through August in Montgomery were up 1 percent over the same period during 2015.

Forecast: Closed transactions during August were eight units or 2 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through August projected 2,972 closed transactions, while the actual sales were 2,958 units, a favorable difference of .47 percent.

Supply: The Montgomery area housing inventory in August was 2,564 units, a decrease of 13 percent from August 2015, and 28 percent below the month-of-August peak in 2007 (3,560 units).

There were 6.4 months of housing supply during August, a decrease of 10 percent from the same time last year (7.1 months). About 6 months of supply is considered a balanced market during August, with buyer and seller having equal bargaining power.

August inventory in the Montgomery area decreased 3 percent from the prior month. This direction is consistent with historical data indicating August inventory on average (2011-2015) decreases from July by 1.2 percent.

Demand: August residential sales increased 6 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that August sales, on average (2010-2014), increase from July by 2.8 percent.

Existing single-family home sales accounted for 85 percent of total sales, while 15 percent was new construction sales.

Pricing: The Montgomery-area median sales price in August was $149,000, up 6.4 percent from last August ($140,000). The median sales price decreased 6.9 percent from the prior month. Historical data (2011-2015) indicate the August median sales price typically increases from July 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. ACRE recommends contacting a local real estate professional for additional market pricing information.

Industry perspective: “Consumers have a fairly optimistic 12-month outlook on housing at the end of the summer home-buying season, supported by increased job confidence and more favorable expectations regarding their personal financial situations compared with this time last year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The return to a slight upward trend in the HPSI (Home Purchase Sentiment Index) during the spring and summer is, thus far, in line with our forecast, which calls for 4 percent growth in home sales in 2016 to the best level since 2006 and continued improvement for 2017.” For the full report, click here.

Click here to generate more graphs from the Montgomery August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

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