Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area sales totaled 452 units during August, up 15 percent from 393 sales in the same month a year earlier. August sales were up 0.4 percent compared to 450 sales in July. Results were 16.6 percent above the five-year August average of 388 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 August totaled 2,076 units, a decrease of 9.3 percent from August 2017’s 2,289 units, and a decrease of 2.1 percent from July 2018’s 2,120 units. July months of supply totaled 4.6 months, a decrease of 21.1 percent from August 2017’s 5.8 months of supply. August’s months of supply also decreased from July’s 4.7 months of supply.
Pricing: The Montgomery-area median sales price in June was $145,700, a decrease of 8.9 percent from one year ago and a decrease of 6.3 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the August median sales price on average decreases from July by 2.1 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 92 days on the market (DOM), a decrease of 14 percent from 107 days in August 2017, and an increase of 2.2 percent from 90 days in July.
Forecast: August sales were seventeen units, or 3.91 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 435 sales for the month, while actual sales were 452 units. ACRE forecast a total of 3,192 residential sales in the Montgomery area year-to-date, while there were 3,226 actual sales through August.
ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the late summer of 2018. Total residential sales during August increased 3.5 percent year-over-year from 5,664 to 5,862 closed transactions. Year-to-date through August, statewide residential sales are up 6.6 percent from 39,594 one year ago to 42,209. Home price appreciation in the state also continues its upward trajectory. The median sales price in August increased 2.9 percent from $158,059 to $162,711, while the year-to-date median sales price is up 4.9 percent from 2017. Although nationwide inventory levels are starting to stabilize, Alabama’s residential inventory decreased 11.4 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during August. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during August spent an average of 95 days on the market, an improvement of 22 days from 2017.
NAR’s national perspective: During August, nationwide sales volume for existing homes increased 0.7 percent year-over-year from 535,000 to 539,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum. With inventory stabilizing and modestly rising, buyers appear ready to step back into the market.”
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The Montgomery Area Residential Monthly Report is developed in conjunction with the Montgomery Area Association of Realtors to better serve its area consumers.