Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 418 units during March, up one unit from 417 sales in the same month a year earlier. March sales were up 25.5 percent compared to 333 sales in February. Results were 11.4 percent above the five-year March average of 375 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 March totaled 1,841 units, a decrease of 14.1 percent from March 2018’s 2,143 units, but an increase of 1.6 percent from February 2019’s 1,812 units. March months of supply totaled 4.4 months, a decrease of 14.3 percent from March 2018’s 5.1 months of supply. March’s months of supply also decreased 19.1 percent from February’s 5.4 months of supply.
Pricing: The Montgomery-area median sales price in March was $154,950, a decrease of 3.2 percent from one year ago and a decrease of 2.1 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 March spent an average of 98 days on the market (DOM), a decrease of 10.1 percent from 109 days in March 2018, and a decrease of 15.5 percent from 116 days in February.
Forecast: March sales were eight units, or 2 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 410 sales for the month, while actual sales were 418 units. ACRE forecast a total of 1,019 residential sales in the Montgomery area year-to-date, while there were 1,001 actual sales through March.
ACRE’s statewide perspective: While nationwide residential sales dropped 8 percent in March, demand for housing in Alabama remained strong. Statewide residential sales increased slightly (0.02 percent) from 5,341 closed transactions in March 2018 to 5,342 in March 2019. Year-to-date, sales increased 3.6 percent from 2018. Home price appreciation in the state continued to climb but at a slower pace as the median sales price in March increased 2.6 percent year-over-year from $158,617 to $162,759. The statewide median sales price is also up 3.6 percent year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 11.3 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season 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 March spent an average of 99 days on the market, an improvement of 19 days from March 2018.
NAR’s national perspective: During March, total existing-home sales nationwide declined 7.8 percent from approximately 434,000 closed transactions one year ago to 400,000 currently. The nationwide median existing-home price increased 3.8 percent in March, marking 85 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “It is not surprising to see a retreat after a powerful surge in sales in the prior month. Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized.”
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.