Montgomery area sees significant boost in June home sales from 2017

Montgomery area sees significant boost in June home sales from 2017
June sales were 12.6 percent ahead of the Alabama Center for Real Estate's sales forecast for the area. (iStock)

Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area sales totaled 509 units during June, up 20.9 percent from 421 sales in the same month a year earlier. June sales were up 3.7 percent compared to 491 sales in May. Results were 31 percent above the five-year June average of 389 sales. Two more resources to review: Quarterly Report and Annual Report.

For all Montgomery-area housing data, click here.

Inventory: Homes listed for sale in the Montgomery area during June totaled 2,139 units, a decrease of 4.2 percent from June 2017’s 2,232 units, and a decrease of 20.5 percent from May 2018’s 2,689 units. Montgomery also experienced a year-over-year decline in months of supply in June. June months of supply totaled 4.2 months, a decrease of 20.7 percent from June 2017’s 5.3 months of supply. June’s months of supply also decreased from May’s 5.5 months of supply.

Pricing: The Montgomery-area median sales price in June was $155,500, a decrease of 2.1 percent from one year ago and an increase of 8.4 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the June median sales price on average increases from May by 5.5 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE highly recommends consulting with a local real estate professional to discuss pricing trends, as they will vary from neighborhood to neighborhood. The homes selling in June spent an average of 108 days on the market (DOM), a decrease of 2.7 percent from 111 days in June 2017, but increasing 17.4 percent from 92 days in May.

Forecast: June sales were 57 units, or 12.6 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 452 sales for the month, while actual sales were 509 units. ACRE forecast a total of 2,300 residential sales in the Montgomery area year-to-date, while there were 2,324 actual sales through June.

ACRE’s statewide perspective: Coming into summer, the spring home-buying season had been significantly affected by very low inventory levels. May residential listings decreased more than 7 percent in the state and decreased 6.1 percent nationwide from one year ago. Residential sales in Alabama, however, increased 8 percent from one year ago, which is impressive considering the 7.3 percent drop in inventory. Home price appreciation heated up with the temperatures as the statewide median sales price increased 10.7 percent from one year ago, while also increasing 7 percent during the first quarter of the year. Home sales prices are expected to continue their upward climb throughout the summer as inventory levels are likely to repeat the declines that were seen during the spring.

NAR’s national perspective: Lawrence Yun, National Association of Realtors chief economist, says a solid economy and job market should be generating a much stronger sales pace than what has been seen so far this year. “Closings were down in a majority of the country last month and declined on an annual basis in each major region,” he said. “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”

 

 

 

 

 

 

 

 

 

 

 

Click here to view the entire monthly report.

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

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