Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 529 units during May, up 7.7% from 491 sales in the same month a year earlier. May sales were up 17.6% compared to 450 sales in April. Results were 25.1% above the five-year May average of 423 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 May totaled 1,899 units, a decrease of 29.4% from May 2018’s 2,689 units, but an increase of 1.5% from April 2019’s 1,871 units. May months of supply totaled 3.6 months, a decrease of 34.5% from May 2018’s 5.7 months of supply.
Pricing: The Montgomery-area median sales price in May was $174,900, an increase of 21.9% from one year ago and up 10% 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 May spent an average of 93 days on the market (DOM), up 1.1% from last year and the same as the prior month.
Forecast: May sales were 76 units, or 16.8%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 453 sales for the month, while actual sales were 529 units. ACRE forecast a total of 1,871 residential sales in the Montgomery area year-to-date, while there were 1,980 actual sales through May.
ACRE’s statewide perspective: Statewide residential sales increased slightly in May, extending the streak to five consecutive months of year-over-year sales gains. Statewide residential sales increased 1.4% from 6,306 closed transactions in May 2018 to 6,392 in May 2019. Year-to-date, sales are up 3.2% from 2018. Home price appreciation in the state continued to climb as the median sales price in May increased 4.3% year-over-year from $165,688 to $172,864. The statewide median sales price is also up 3.4% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 11.6% 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 May spent an average of 88 days on the market, an improvement of 12 days from May 2018.
NAR’s national perspective: Existing home sales rebounded in May, posting their first year-over-year gain since August 2018. Nationwide sales increased 0.9% from approximately 535,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.8% in May, marking 87 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”
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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.