Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 303 units during November, an increase in sales of 6 percent from the same month last year. Year-to-date sales decreased 1.8 percent from the same period of 2015. Another resource to review is the Annual Report.
For all Montgomery-area real estate data, click here.
Forecast: Closed transactions during November were nine units or 3 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through November projected 3,994 closed transactions, while the actual sales were 3,921 units, a negative difference of 2 percent.
Supply: The Montgomery area housing inventory in November was 2,280 units, a decrease of 12 percent from November 2015, and 34 percent below the month-of-November peak in 2007 (3,432 units).
There were 7.5 months of housing supply during November, a decrease of 17 percent from the same time last year. About 6 months of supply is considered a balanced market during November, with buyer and seller having equal bargaining power.
November inventory in the Montgomery area decreased 6 percent from the prior month. This direction is consistent with historical data indicating November inventory on average (2011-2015) decreases from October by 3 percent.
Demand: November residential sales decreased 3 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that November sales, on average (2010-2014), decrease from October by 13 percent.
Existing single-family home sales accounted for 84 percent of total sales, while new construction sales made up 15 percent.
Pricing: The Montgomery-area median sales price in November was $139,900, up 4 percent from last November ($135,000). The median sales price decreased 0.8 percent from the prior month. Historical data (2011-2015) indicate the November median sales price typically decreases from October by 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: “The HPSI (home purchase sentiment index) fell in October for the third straight month from its record high in July, reaching the lowest level since March. Recent erosion in sentiment likely reflects, in part, enhanced uncertainty facing consumers today,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate. 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 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 November Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.