Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 377 units during July, a decrease in sales of 22 percent from the same month last year. Another resource to review is the Annual Report.
For all Montgomery-area real estate data, click here.
Forecast: Closed transactions during July were 55 units or 12 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through July projected 2,565 closed transactions, while the actual sales were 2,559 units, a favorable difference of .23 percent.
Supply: The Montgomery area housing inventory in July was 2,633 units, a decrease of 13 percent from July 2015, and 26 percent below the month-of-July peak in 2008 (3,546 units).
There were 7 months of housing supply during July, an increase of 11.4 percent from the same time last year (6.3 months). About 6 months of supply is considered a balanced market during July, with buyer and seller having equal bargaining power.
July inventory in the Montgomery area decreased 1.1 percent from the prior month. This direction is consistent with historical data indicating July inventory on average (2011-2015) decreases from June by 1.4 percent.
Demand: July residential sales decreased 12 percent from the prior month. This direction contrasts with seasonal patterns and historical data indicating that July sales, on average (2010-2014), increase from June by 4.7 percent.
Existing single-family home sales accounted for 85 percent of total sales, while 15 percent was new construction sales.
Pricing: The Montgomery-area median sales price in July was $160,000, up 9.2 percent from last July ($146,500). The median sales price increased 6.2 percent from the prior month. Historical data (2011-2015) indicate the July median sales price typically decreases from June by 0.8 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional for additional market pricing information.
Industry perspective: “Financial volatility resulting from Brexit has created some uncertainty among investors as yields on government bonds have dropped sharply, Treasury yield curves have flattened over the past month, and the Chinese Yuan has depreciated to a six-year low against the dollar,” said Fannie Mae Chief Economist Doug Duncan. “In addition, our view on interest rates continues to be ‘low for long’ as we believe a Fed decision to raise interest rates will likely be on hold until June of 2017. Brexit’s economic impact on the U.S. will likely be limited, especially from a trade perspective, and should be a near-term positive for the housing and mortgage market as falling mortgage rates have prompted new refinance demand.” For the full report, click here.
Click here to generate more graphs from the Montgomery July Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.