Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 365 units during September, up 6.4 percent from 343 sales in the same month a year earlier. However, September sales were down 19.2 percent compared to 452 sales in August. Results were 3.7 percent above the five-year September average of 352 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 September totaled 2,033 units, a decrease of 10.4 percent from September 2017’s 2,269 units, and a decrease of 2.1 percent from August 2018’s 2,076 units. September months of supply totaled 5.6 months, a decrease of 15.8 percent from September 2017’s 6.6 months of supply. However, September’s months of supply increased from August’s 4.6 months of supply.
Pricing: The Montgomery-area median sales price in September was $158,900, an increase of 5.9 percent from one year ago and an increase of 9.1 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the September median sales price on average decreases from August by 3.7 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 September spent an average of 102 days on the market (DOM), a decrease of 2.9 percent from 105 days in September 2017, and an increase of 10.9 percent from 92 days in August.
Forecast: September sales were 14 units, or 3.7 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 379 sales for the month, while actual sales were 365 units. ACRE forecast a total of 3,571 residential sales in the Montgomery area year-to-date, while there were 3,591 actual sales through September.
ACRE’s statewide perspective: While nationwide sales declined during September, residential sales in Alabama continued to grow during the early fall of 2018. Total residential sales in Alabama increased 8.5 percent year-over-year from 4,678 to 5,074 closed transactions. Year-to-date through September, statewide residential sales are up 6.8 percent from 44,272 one year ago to 47,283 currently. Home price appreciation in the state grew but at a slower pace than in previous months. The median sales price in September increased 0.6 percent from $161,480 to $162,482 while the year-to-date median sales price is up 4.4 percent from 2017. Although nationwide inventory levels are starting to stabilize, Alabama’s residential inventory decreased 8.9 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during September spent an average of 90 days on the market, an improvement of 18 days from 2017.
NAR’s national perspective: During September, nationwide sales volume for existing homes decreased 9.1 percent year-over-year from 462,000 to 420,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, rising interest rates played a significant role in September sales declines in markets across the nation. “This is the lowest existing home sales level since November 2015,” he said. “A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”
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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.