Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 250 units during January, up 4.6 percent from 239 sales in the same month a year earlier. January sales were down 20.9 percent compared to 316 sales in December. Results were 3.8 percent below the five-year January average of 260 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 January totaled 1,799 units, a decrease of 8 percent from January 2018’s 1,955 units, but an increase of 1.7 percent from December 2018’s 1,769 units. January months of supply totaled 7.2 months, a decrease of 12 percent from January 2018’s 8.2 months of supply. January’s months of supply increased 28.5 percent from December’s 5.6 months of supply.
Pricing: The Montgomery-area median sales price in January was $149,900, an increase of 3.1 percent from one year ago and a decrease of 11.3 percent from the prior month. 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 January spent an average of 108 days on the market (DOM), a decrease of 4.4 percent from 113 days in January 2018, but an increase of 6.9 percent from 101 days in December.
Forecast: January sales were 42 units, or 14.4 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 292 sales for the month, while actual sales were 250 units. ACRE forecast a total of 4,704 residential sales in the Montgomery area during 2019, while there were 4,666 actual sales in 2018.
ACRE’s statewide perspective: After a strong 2018, statewide residential sales in January increased 1.1 percent year-over-year from 3,320 to 3,358 closed transactions. Home price appreciation in the state continued to climb as the median sales price in January increased 5.5 percent year-over-year from $143,152 to $151,015. Although nationwide inventory levels are trending upwards, Alabama’s residential listings decreased 7.4 percent from one year ago. Low inventory levels were a significant 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 January spent an average of 106 days on the market, an improvement of 10 days from 2018.
NAR’s national perspective: During January, total existing-home sales nationwide declined 9 percent from approximately 313,000 closed transactions one year ago to 285,000 currently. Lawrence Yun, chief economist for the National Association of Realtors, said “Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low. Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”
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.