Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area sales totaled 450 units during July, up 13.6 percent from 396 sales in the same month a year earlier. July sales were down 11.6 percent compared to 509 sales in June. Results were 14.5 percent above the five-year July average of 393 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 July totaled 2,120 units, a decrease of 6.6 percent from July 2017’s 2,271 units, and a decrease of .9 percent from June 2018’s 2,139 units. Montgomery also experienced a year-over-year decline in months of supply. July months of supply totaled 4.7 months, a decrease of 17.9 percent from July 2017’s 5.7 months of supply. July’s months of supply increased from June’s 4.2 months of supply.
Pricing: The Montgomery-area median sales price in June was $155,500, an increase of 2 percent from one year ago and no change from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the July median sales price on average decreases from June by 1.5 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 July spent an average of 90 days on the market (DOM), a decrease of 21.7 percent from 115 days in July 2017, and decreasing 16.7 percent from 108 days in June.
Forecast: July sales were seven units, or 1.53 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 457 sales for the month, while actual sales were 450 units. ACRE forecast a total of 2,757 residential sales in the Montgomery area year-to-date, while there were 2,774 actual sales through July.
ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the second quarter of 2018. Total residential sales increased 10.4 percent year-over-year from 16,450 to 18,157 closed transactions. Home price appreciation in the state also continues its upward trajectory, as the median sales price during the second quarter increased 4.3 percent year-over-year from $155,278 to $161,975. Mirroring national trends, statewide inventory decreased 9.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during the second quarter. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during the second quarter of 2018 spent an average of 98 days on the market, an improvement of 24 days from 2017.
NAR’s national perspective: During June, nationwide sales volume for existing homes decreased 5 percent year-over-year from 600,000 to 570,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “there continues to be a mismatch since the spring between the growing level of home buyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast, and in many cases has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”
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The Montgomery Area Residential Monthly Report is developed in conjunction with theMontgomery Area Association of Realtors to better serve its area consumers.