January home sales in Montgomery area up 17.6% from one year ago

January home sales in Montgomery area up 17.6% from one year ago
The Montgomery-area median home sales price in January was $149,250, almost the same as it was a year ago. (Ed Willcoxon/ACRE)

Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 294 units during January, up 17.6% from 250 sales in the same month a year earlier. January sales were down 25.8%% compared to 396 sales in December. Results were 10.9% above the five-year January average of 265 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 January totaled 1,642 units, a decrease of 8.7% from January 2019’s 1,799 units and an increase of 0.9% from December 2019’s 1,627 units. January months of supply totaled 5.6 months, a decrease of 22.2% from January 2019’s 7.2 months of supply. January months of supply increased 36.6% from December 2019’s 4.1 months.

Pricing: The Montgomery-area median sales price in January was $149,250, a decrease of 0.1% from one year ago and a decrease of 7.7% 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 January spent an average of 91 days on the market (DOM), down 15.7% from last year and down 1.1% from the prior month.

Forecast: January sales were 18 units, or 5.8%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 312 sales for the month, while actual sales were 294 units.

ACRE’s statewide perspective: Residential sales growth was especially strong in January as total residential sales increased 23.2% year-over-year from 3,347 to 4,122 closed transactions. Markets across the state have plenty of momentum as 2019 was a record year for residential sales in Alabama. Home price appreciation continued to climb as the median sales price in January increased 11.8% year-over-year, marking 27 consecutive months of gains. While properties listed for sale nationwide decreased 10.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 17% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2019 and continued into January. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace. Homes selling in Alabama during January spent an average of 92 days on the market, a decrease of 15 days from January 2019.

NAR’s national perspective: Existing home sales increased significantly in January, rising 11.6% year-over-year from approximately 285,000 closed transactions one year ago to 318,000 currently. The nationwide median existing-home price increased 6.8% in January, marking 95 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales. Mortgage rates have helped with affordability, but it is supply conditions that have driven price growth.” Properties listed for sale nationwide declined 10.7% in January from approximately 1.59 million listings one year ago to 1.42 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.

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