Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 333 units during February, up 21.5 percent from 274 sales in the same month a year earlier. February sales were up 33.2 percent compared to 250 sales in January. Results were 19.5 percent above the five-year February average of 279 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 February totaled 1,812 units, a decrease of 7.8 percent from February 2018’s 1,966 units, but an increase of 0.7 percent from January 2019’s 1,799 units. February months of supply totaled 5.4 months, a decrease of 24.2 percent from February 2018’s 7.2 months of supply. February’s months of supply also decreased from January’s 7.2 months of supply.

Pricing: The Montgomery-area median sales price in February was $158,284, an increase of 15 percent from one year ago and an increase of 5.9 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 February spent an average of 116 days on the market (DOM), a decrease of 1.7 percent from 118 days in February 2018, but an increase of 7.4 percent from 108 days in January.

Forecast: February sales were 16 units, or 5.1 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 317 sales for the month, while actual sales were 333 units. ACRE forecast a total of 609 residential sales in the Montgomery area year-to-date, while there were 583 actual sales through February.

ACRE’s statewide perspective: Statewide residential sales in February increased 10.9 percent year-over-year from 3,807 to 4,222 closed transactions. Year-to-date sales increased 6.4 percent from 2018. Home price appreciation in the state continued to climb, but at a slower pace, as the median sales price in February increased 3 percent year-over-year from $152,771 to $157,319. The statewide median sales price is also up 4.2 percent year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 8.9 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the early months of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during February spent an average of 99 days on the market, an improvement of 27 days from February 2018.

NAR’s national perspective: During February, total existing-home sales nationwide declined 2.2 percent from approximately 319,000 closed transactions one year ago to 312,000 currently. The nationwide median existing-home price increased 3.6 percent in February, marking 84 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “It is very welcoming to see more inventory showing up in the market. For sustained growth, significant construction of moderately priced homes is still needed. More construction will help boost local economies and more home sales will help lessen wealth inequality as more households can enjoy in housing wealth gains.”

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.