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 257 units during February, a decrease in sales of 24 percent from February 2016’s total of 338 units. Another resource to review is the Annual Report.

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

February home sales in Montgomery dipped 24 percent compared to last year.

Forecast: Closed transactions during February were 27 units or 9 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through February projected 541 closed transactions, while the actual sales were 564 units.

Supply: The Montgomery area housing inventory in February was 2,201 units, a decrease of 12 percent from February 2016 and 35 percent below the month-of-February peak in 2008 (3,391 units).

There were 8.6 months of housing supply during February, a decrease of 16 percent from the same time in 2016. About 6 months of supply is considered a balanced market during February, with buyer and seller having equal bargaining power.

February inventory in the Montgomery area increased 2 percent from the prior month. This direction is consistent with historical data indicating February inventory on average (2012-2016) increases from January by 1.4 percent.

Demand: February residential sales decreased 16 percent from the prior month. This direction contrasts with seasonal patterns and historical data indicating that February sales, on average (2012-2016), increase from January by 15 percent.

Existing single-family home sales accounted for 89 percent of total sales, while new construction sales made up 11 percent.

Pricing: The Montgomery-area median sales price in February was $128,000, up 1.6 percent from February 2016 ($125,950). The median sales price decreased 14 percent from the prior month. Historical data (2012-2016) indicate the February median sales price typically increases from January by 7 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 expect the housing expansion to continue, albeit at a more moderate pace than last year given continued pressure on affordability,” said Fannie Mae Chief Economist Doug Duncan. “Depressed inventory, particularly in the more affordable segments, will likely constrain sales and push home price gains that outpace income growth. A faster pace of monetary tightening, unless accompanied by a stronger increase in household income, also poses downside risk to housing.”

Click here to generate more graphs from the Montgomery February 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.