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 311 units during October, a decrease in sales of 10 percent from the same month last year. Year-to-date sales decreased 2.4 percent from the same period of 2015. Another resource to review is the Annual Report.

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

October home sales in Montgomery fell 10 percent compared to October 2015.

Forecast: Closed transactions during October were 45 units or 13 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through October projected 3,682 closed transactions, while the actual sales were 3,618 units, a negative difference of 2 percent.

Supply: The Montgomery area housing inventory in October was 2,430 units, a decrease of 10 percent from October 2015, and 32 percent below the month-of-October peak in 2007 (3,580 units).

There were 7.8 months of housing supply during October, a decrease of 0.3 percent from the same time last year. About 6 months of supply is considered a balanced market during October, with buyer and seller having equal bargaining power.

October inventory in the Montgomery area decreased 4.4 percent from the prior month. This direction is consistent with historical data indicating October inventory on average (2011-2015) decreases from September by 2.7 percent.

Demand: October residential sales decreased 22 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that October sales, on average (2010-2014), decrease from September by 0.2 percent.

Existing single-family home sales accounted for 87 percent of total sales, while new construction sales made up 12 percent.

Pricing: The Montgomery-area median sales price in October was $141,000, up 12 percent from last October ($126,000). The median sales price decreased 4.7 percent from the prior month. Historical data (2011-2015) indicate the October median sales price typically increases from September by 2.4 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: “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate,” said Doug Duncan of Fannie Mae. “Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013, weighing on the index. However, this component of the HPSI (home purchase sentiment index) is volatile from month to month, and the firming trend in wage gains from the October jobs report, if sustained, may foreshadow an improving view in the near future.”

Click here to generate more graphs from the Montgomery October 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 Area Association of Realtors to better serve River Region consumers.