Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 499 units during August, up 10.4% from 452 sales in the same month a year earlier. August sales were up 0.4% compared to 497 sales in July. Results were 23.1% above the five-year August average of 405 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 August totaled 1,869 units, a decrease of 10% from August 2018’s 2,076 units and a decrease of 0.6% from July 2019’s 1,881 units. August months of supply totaled 3.7 months, a decrease of 18.5% from August 2018’s 4.6 months of supply. August months of supply decreased 1% from July 2019’s 3.8 months.

Pricing: The Montgomery-area median sales price in August was $165,000, an increase of 13.2% from one year ago and a decrease of 5.7% 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 August spent an average of 91 days on the market (DOM), down 1.1% from last year and up 11% from the prior month.

Forecast:  August sales were 57 units, or 12.9%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 442 sales for the month, while actual sales were 499 units. ACRE forecast a total of 3,239 residential sales in the Montgomery area year-to-date, while there were 3,428 actual sales through August.

ACRE’s statewide perspective: A strong late-summer buying season continued in August as total residential sales increased 7.5% year-over-year from 5,862 to 6,302 closed transactions. Year-to-date, sales are up 3.8% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in August increased 8.1% year-over-year, marking 22 consecutive months of gains. The statewide median sales price is up 4.7% year-to-date. While nationwide inventory levels (active listings) decreased 2.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 12.6% 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 not surprising to see homes selling at a slightly quicker pace than one year ago. Homes selling in Alabama during August spent an average of 86 days on the market, a decrease of nine days from August 2018.

NAR’s national perspective: After a 3.3% gain in July, existing home sales decreased 0.9% year-over-year in August from approximately 539,000 closed transactions one year ago to 534,000 currently. The nationwide median existing-home price increased 4.7% in August, marking 90 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “As expected, buyers are finding it hard to resist the current (mortgage) rates. The desire to take advantage of these promising conditions is leading more buyers to the market.” He continued, “Sales are up, but inventory numbers remain low and are thereby pushing up home prices. Homebuilders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income.”

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.