Sales: According to the Montgomery Area Association of REALTORS, October home sales in the area increased 41% from 410 to 578 closed transactions. Sales increased 9.1% from September, and sales are now up 12.5% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all Montgomery-area housing data, click here.
Inventory: Homes listed for sale decreased 42% year-over-year from 1,816 to 1,053 listings. Months of supply decreased from 4.4 to 1.8, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The median sales price in October was $198,450, an increase of 24.3% from one year ago and an increase of 4.2% from September. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Homes sold in October averaged 87 days on the market (DOM), 2 days faster than October 2019.
Forecast: October sales were 160 units, or 38.3%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 418 sales for the month, while actual sales were 578 units. ACRE forecast a total of 4,346 residential sales year-to-date, while there were 4,779 actual sales through October, a difference of 10%.
Click here to view the entire monthly report.
NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased 4.3% from September (seasonally adjusted annual rate), rising for the fifth consecutive month, and increased 26.6% from one year ago. Sales prices continued to grow at higher rates than before the pandemic, rising almost 16% year-over-year.
Lawrence Yun, chief economist for NAR said, “Considering that we remain in a period of stubbornly high unemployment relative to pre-pandemic levels, the housing sector has performed remarkably well this year. The surge in sales in recent months has now offset the spring market losses. With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market’s growth to continue into 2021.”
ACRE commentary: Home sales in Alabama increased for the fifth consecutive month in October, rising 32.2% year-over-year. Sales usually begin to slow in the fall months, but low mortgage rates and demand for more housing space has resulted in significantly elevated sales activity. For additional context, year-over-year sales gains in October averaged 6.7% during the last 5 years, and it is unlikely that the large gains seen in recent months will continue long-term. Sales prices continue to grow at a faster rate than before the pandemic, which could motivate more potential sellers to list their homes going forward. Tight inventory has played a large role in driving sales prices upwards, with total listings down 32.3% in October.
The Montgomery Residential Monthly Report is developed in connection with the Montgomery Area Association of Realtors.
Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period October 1 – 31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the upcoming impact of COVID-19 on the housing market.
