Sales: According to the Montgomery Area Association of Realtors’ Multiple Listing Service, Montgomery-area residential sales totaled 360 units during May, a decrease in sales of 15.5 percent from the same period last year. Another resource to review is the Annual Report.
For all Montgomery-area real estate data, click here.
Forecast: Closed transactions during May were 52 units or 12.6 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through May projected 1,713 closed transactions, while the actual sales were 1,754 units, a favorable difference of 2 percent.
Supply: The Montgomery area housing inventory in May was 2,613 units, a decrease of 12.6 percent from May 2015, and 26 percent below the month of May peak in 2008 (3,537 units).
There was 7.3 months of housing supply during May, an increase of 3.4 percent from the same time last year (7 months). About 6 months of supply is considered a balanced market during May, with buyer and seller having equal bargaining power.
May inventory in the Montgomery area increased 2.8 percent from the prior month. This direction is consistent with historical data indicating May inventory on average (2011-2015) increases from April by 0.6 percent.
Demand: May residential sales increased 3.2 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that May sales, on average (2010-2014), increase from April by 6.7 percent.
Existing single-family home sales accounted for 87 percent of total sales, while 12 percent was new construction sales. Both percentages were unchanged from May 2015.
Pricing: The Montgomery-area median sales price in May was $154,500, up 10.4 percent from last May ($139,900). The median sales price increased 15.3 percent from the prior month. Historical data (2011-2015) indicate the May median sales price typically increases from April by 3.9 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: “Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home-buying season gains momentum, the effect may be muted by May’s discouraging jobs report.” For the full report on home purchase sentiment, click here.