Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 396 units during December, up 25.3% from 316 sales in the same month a year earlier. December sales were up 7% compared to 370 sales in November. Results were 23.1% above the five-year December average of 322 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 December totaled 1,627 units, a decrease of 8% from December 2018’s 1,769 units and a decrease of 8.1% from November 2019’s 1,770 units. December months of supply totaled 4.1 months, a decrease of 26.8% from December 2018’s 5.6 months of supply. December months of supply decreased 14.3% from November 2019’s 4.8 months.
Pricing: The Montgomery-area median sales price in December was $161,750, a decrease of 4% from one year ago and a decrease of 7.5% 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 December spent an average of 92 days on the market (DOM), down 8.9% from last year and from the prior month.
Forecast: December sales were 45 units, or 12.8%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 351 sales for the month, while actual sales were 396 units. ACRE forecast a total of 4,704 residential sales in the Montgomery area during 2019, while there were 5,015 actual sales through December.
ACRE’s statewide perspective: Residential sales growth was especially strong in December as total residential sales increased 18.9% year-over-year from 4,303 to 5,116 closed transactions. Total 2019 sales were up 5.3% from 2018, making 2019 the strongest year for residential sales on record. Home price appreciation in the state continued to climb as the median sales price in December increased 4.8% year-over-year, marking 26 consecutive months of gains. The statewide median sales price was up 5.7% for 2019. While properties listed for sale nationwide decreased 8.5% year-over-year, Alabama’s residential listings continued to tighten, decreasing 13.5% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the fourth quarter 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 December spent an average of 84 days on the market, a decrease of 18 days from December 2018.
NAR’s national perspective: Existing home sales increased significantly in December, rising 15.1% year-over-year from approximately 377,000 closed transactions one year ago to 434,000 currently. Total 2019 sales were equal to 2018 sales. The nationwide median existing-home price increased 7.8% in December, marking 94 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “I view 2019 as a neutral year for housing in terms of sales. Home sellers are positioned well, but prospective buyers aren’t as fortunate. Low inventory remains a problem, with first-time buyers affected the most.” Properties listed for sale nationwide declined 8.5% in December from approximately 1.53 million listings one year ago to 1.4 million currently.
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.