Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, the Montgomery Area residential sales totaled 286 units during November, an increase in sales of 8 percent from the same period last year. Year-to-date sales rose 12 percent over the same period last year. Two more resources to review: Quarterly Report and Annual Report

For all Montgomery area real estate data, click here. 

Forecast: Closed transactions during November were 16 units or 5 percent below the Center’s monthly forecast. ACRE’s year-to-date sales forecast through November projected 3,830 closed transactions while the actual sales were 3,994 units, a rise of 4.2 percent.

Sales rose nearly 8 percent year-over-year during November in Montgomery.

Supply: The Montgomery Area housing inventory in November was 2,603 units, a decrease of 2.1 percent from November 2014. and 24 percent below the month of November peak in 2007 (3,432 units) which represent encouraging news.

There was 9.1 months of housing supply during November 2015, a decrease of 9.3 percent from the same time last year(10). Approximately 6 months of supply is considered a balanced market during November where buyer and seller have equal bargaining power.

November inventory in the Montgomery Area decreased 4 percent from the prior month. This direction is consistent with historical data indicating November inventory on average (2010-14) decreases from the month of October by 2.3 percent.

Demand: November residential sales decreased 17 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that November sales, on average (2010-14), decrease from the month of October 14.7 percent.

Existing single family home sales accounted for 89 percent (up from November 2014) of total sales while 11 percent (down (again from November 2014).

Pricing: The Montgomery Area median sales price in November was $135,000, down 7 percent from last November ($145,000). The November median sales price did increase 7 percent from the prior month. Historical data (2010-14) indicates that the November median sales price typically decrease from the month of October by 4.4 percent. Pricing can fluctuate from month-to-month as the sample size of data (closed transactions) is subject to seasonal buying patterns and we recommend contacting a local real estate professional for additional market pricing information.

Industry Perspective: “Despite mixed housing and mortgage market data, our forecast for housing activity is little changed over the past several months,” said Fannie Mae Chief Economist  Dave Duncan. “The supply of existing homes remains lean amid slowing new single-family construction, putting significant upward pressure on home prices. While this helps boost home equity, it hurts affordability, especially for potential first-time homebuyers. Meanwhile, we expect mortgage rates to rise only gradually through next year, and an improving income trend should help support affordability. We foresee total home sales improving further in 2016, albeit at less than half of the 8.0 percent increase expected this year.” For full report click here.

The average sales price during November in Montgomery shot up 5.3 percent over last year.

On average, homes in Montgomery spent 14 fewer days on the market during November compared to last year.

Inventory also decreased slightly to just over 2,600 units.

The median sales price during November slipped compared to last year in Montgomery.

Months of supply is not ideal at 9.1 but it is better than the 17.6 peak of 2010.

Year-to-date home sales during November are up 12 percent over last year.

The 286 units sold during November in Montgomery sits 43 percent below the 2005 peak of 504 units.

The Montgomery Area Residential Monthly Report is work product developed in conjunction with the Montgomery Association of Realtors to better serve River Region consumers. The Alabama Center for Real Estate monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current available data. Real estate is local and statistics will fluctuate between areas within a city including subdivisions. ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.