Sales: According to the Montgomery Area Association of Realtors Multiple Listing Service, Montgomery-area home sales totaled 410 units during October, up 6.5% from 385 sales in the same month a year earlier. October sales were down 0.2% compared to 411 sales in September. Results were 15.8% above the five-year October average of 354 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 October totaled 1,816 units, a decrease of 8.6% from October 2018’s 1,986 units and a decrease of 0.8% from September 2019’s 1,830 units. October months of supply totaled 4.4 months, a decrease of 14.1% from October 2018’s 5.2 months of supply. October months of supply decreased 0.5% from September’s 2019’s 4.5 months.
Pricing: The Montgomery-area median sales price in October was $159,700, an increase of 4.2% from one year ago and a decrease of 3.2% 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 October spent an average of 89 days on the market (DOM), down 16.8% from last year and down 1.1% from the prior month.
Forecast: October sales were 25 units, or 6.5%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 385 sales for the month, while actual sales were 410 units. ACRE forecast a total of 4,007 residential sales in the Montgomery area year-to-date, while there were 4,249 actual sales through October.
ACRE’s statewide perspective: Residential sales growth continued in October as total residential sales increased 6.7% year-over-year from 4,883 to 5,211 closed transactions. Year-to-date, sales are up 4.5% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in October increased 10.1% year-over-year, marking 24 consecutive months of gains. The statewide median sales price is up 5.5% year-to-date. While properties listed for sale nationwide decreased 4.3% year-over-year, Alabama’s residential listings continued to tighten, decreasing 10.7% 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 October spent an average of 88 days on the market, a decrease of eight days from October 2018.
NAR’s national perspective: Existing home sales rebounded in October, increasing 3.8% year-over-year from approximately 446,000 closed transactions one year ago to 463,000 currently. The nationwide median existing-home price increased 6.2% in October, marking 92 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Historically-low interest rates, continuing job expansion and higher weekly earnings are undoubtedly contributing to these higher numbers. We will likely continue to see sales climb as long as potential buyers are presented with an adequate supply of inventory.”
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.