Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 450 units during April, up 14.2 percent from 394 sales in the same month a year earlier. April sales were up 7.7 percent compared to 418 sales in March. Results were 27.8 percent above the five-year April average of 352 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 April totaled 1,871 units, a decrease of 16.8 percent from April 2018’s 2,248 units, but an increase of 1.6 percent from March 2019’s 1,841 units. April months of supply totaled 4.2 months, a decrease of 27.1 percent from April 2018’s 5.7 months of supply.
Pricing: The Montgomery-area median sales price in April was $159,000, an increase of 2.6 percent from one year ago and 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 April spent an average of 93 days on the market (DOM), a decrease of 12.3 percent from 106 days in April 2018 and a decrease of 5.1 percent from 98 days in March.
Forecast: April sales were 51 units, or 12.8 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 399 sales for the month, while actual sales were 450 units. ACRE forecast a total of 1,418 residential sales in the Montgomery area year-to-date, while there were 1,451 actual sales through April.
ACRE’s statewide perspective: While nationwide residential sales dropped 1 percent in April, demand for housing in Alabama remained strong. Statewide residential sales increased 4.4 percent from 5,574 closed transactions in April 2018 to 5,820 in April 2019. Year-to-date, sales increased 3.8 percent from 2018. Home price appreciation in the state continued to climb as the median sales price in April increased 3.2 percent year-over-year from $155,250 to $160,283. The statewide median sales price is also up 3.2 percent year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 10.7 percent from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during April spent an average of 93 days on the market, an improvement of three days from April 2018.
NAR’s national perspective: During April, total existing-home sales nationwide declined 1.1 percent from approximately 460,000 closed transactions one year ago to 455,000 currently. The nationwide median existing-home price increased 3.6 percent in April, marking 86 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions. Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”
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.