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 367 units during March, a decrease in sales of 14 percent from March 2016’s total of 425 units. Another resource to review is the Annual Report.

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

Forecast: Closed transactions during March were eight units or 2 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through March projected 900 closed transactions, while the actual sales were 931 units.

Supply: The Montgomery area housing inventory in March was 2,232 units, a decrease of 12 percent from March 2016 and 35 percent below the month-of-March peak in 2008 (3,416 units).

There were 6.1 months of housing supply during March, an increase of 1 percent from the same time in 2016. About 6 months of supply is considered a balanced market during March, with buyer and seller having equal bargaining power.

March inventory in the Montgomery area increased 1 percent from the prior month. This direction is consistent with historical data indicating March inventory on average (2012-2016) increases from February by 4 percent.

Demand: March residential sales increased 43 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that March sales, on average (2012-2016), increase from February by 24 percent.

Existing single-family home sales accounted for 86 percent of total sales, while new construction sales made up 13.5 percent.

Pricing: The Montgomery-area median sales price in March was $140,000, down 3.4 percent from March 2016 ($145,000). The median sales price increased 9 percent from the prior month. Historical data (2012-2016) indicate the March median sales price typically increases from February 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: “Our economic forecast remains in a conservative holding pattern as we await word on the particulars of the new Administration’s plans for fiscal stimulus,” said Fannie Mae Chief Economist Doug Duncan. “In the meantime, economic sentiment from most industry stakeholders continues to reach new heights: consumers, as demonstrated by our National Housing Survey, are more positive than at any time since the survey’s inception in 2010 about the direction of the economy, while homebuilders’ optimism remains near an 11-year high. Tight inventory remains a boon to home prices and Americans’ net worth, but it also continues to price out many would-be first-time homebuyers. However, our research suggests that aging millennials, now boasting higher real wages, are beginning to narrow the homeownership attainment gap.”

Click here to generate more graphs from the Montgomery March 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.