Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 374 units during November, up 5.9 percent from 353 sales in the same month a year earlier. November sales were down 2.9 percent compared to 385 sales in October. Results were 26.4 percent above the five-year November average of 296 sales.
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Inventory: Homes listed for sale in the Montgomery area during November totaled 1,920 units, a decrease of 10 percent from November 2017’s 2,133 units, and a decrease of 3.3 percent from October 2018’s 1,986 units. November months of supply totaled 5.1 months, a decrease of 15 percent from November 2017’s 6 months of supply. November’s months of supply also decreased from October’s 5.2 months of supply.
Pricing: The Montgomery-area median sales price in November was $149,750, an increase of 4.4 percent from one year ago and a decrease of 2.3 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the November median sales price on average decreases from October by 2.9 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 November spent an average of 99 days on the market (DOM), a decrease of 2 percent from 101 days in November 2017, and a decrease of 7.5 percent from 107 days in October.
Forecast: November sales were 36 units, or 1.5 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 338 sales for the month, while actual sales were 374 units. ACRE forecast a total of 4,288 residential sales in the Montgomery area year-to-date, while there were 4,350 actual sales through November.
ACRE’s statewide perspective: While nationwide sales declined 4.5 percent during November, residential sales in Alabama continued to grow. Total residential sales in Alabama increased 6.9 percent year-over-year from 4,311 to 4,606 closed transactions. Year-to-date through November, statewide residential sales are up 7 percent from 53,056 one year ago to 56,769 currently. Home price appreciation in the state continued to climb as the median sales price in November increased 3.2 percent year-over-year from $151,667 to $156,587. The year-to-date median sales price is up 4.7 percent from 2017. Although nationwide inventory levels increased 4.2 percent in November, Alabama’s residential inventory decreased 8.8 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during November spent an average of 93 days on the market, an improvement of 24 days from 2017.
NAR’s national perspective: During November, nationwide inventory for existing homes increased 4.2 percent year-over-year from 1.67 million to 1.74 million residential listings. According to Lawrence Yun, chief economist for the National Association of Realtors, “the market conditions in November were mixed, with good signs of stabilizing home sales compared to recent months, though down significantly from one year ago. Rising inventory is clearly taming home price appreciation.”
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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.