Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 497 units during July, up 10.4% from 450 sales in the same month a year earlier. July sales were up 10% compared to 452 sales in June. Results were 19.9% above the five-year July average of 415 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 July totaled 1,881 units, a decrease of 11.3% from July 2018’s 2,139 units and a decrease of 2% from June 2019’s 1,919 units. July months of supply totaled 3.8 months, a decrease of 19.7% from July 2018’s 4.7 months of supply. July months of supply decreased 10.9% from June 2019’s 4.2 months.
Pricing: The Montgomery-area median sales price in July was $175,000, an increase of 12.5% from one year ago and an increase of 3.6% 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 July spent an average of 82 days on the market (DOM), down 8.9% from last year and down 17.2% from the prior month.
Forecast: July sales were 34 units, or 7.3%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 463 sales for the month, while actual sales were 497 units. ACRE forecast a total of 2,797 residential sales in the Montgomery area year-to-date, while there were 2,929 actual sales through July.
ACRE’s statewide perspective: After a slight decline in June, statewide residential sales rebounded in July, increasing 10.2% from 5,722 closed transactions in July 2018 to 6,307 in July 2019. Year-to-date, sales are up 3.1% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in July increased 4.6% year-over-year from $169,178 to $176,926. The statewide median sales price is up 4.2% year-to-date. While nationwide inventory levels (active listings) decreased 1.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.9% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer buying season of 2019. With low inventory levels, it is surprising to see homes selling at a slightly slower pace than one year ago. Homes selling in Alabama during July spent an average of 89 days on the market, an increase of three days from July 2018.
NAR’s national perspective: After a 7.4% drop in June, existing home sales strengthened in July. Nationwide residential sales increased 3.3% from approximately 523,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.3% in July, marking 89 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Falling mortgage rates are improving housing affordability and nudging buyers into the market.” However, he added that the supply of affordable housing is low across the nation. “The shortage of lower-priced homes has markedly pushed up home prices.”
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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.