Sales: According to the Montgomery Area Association of REALTORS, November home sales in the area increased 37.6% from 370 to 509 closed transactions. Sales decreased 11.9% from October, and sales are now up 14.5% 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 42.5% year-over-year from 1,770 to 1,018 listings. Months of supply decreased from 4.8 to 2.0, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The median sales price in November was $190,000, an increase of 8.6% from one year ago and a decrease of 4.3% from October. 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 November averaged 85 days on the market (DOM), 16 days faster than November 2019.
Forecast: November sales were 134 units, or 35.7%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 375 sales for the month, while actual sales were 509 units. ACRE forecast a total of 4,721 residential sales year-to-date, while there were 5,288 actual sales through November, a difference of 12%.
NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide decreased 2.5% from October (seasonally adjusted annual rate), ending 5 consecutive months of gains. However, sales did increase significantly from one year ago, rising 25.8%. Sales prices continued to grow at higher rates than before the pandemic, rising almost 15% year-over-year.
Lawrence Yun, chief economist for NAR said, “Home sales in November took a marginal step back, but sales for all of 2020 are already on pace to surpass last year’s levels.Given the COVID-19 pandemic, it’s amazing that the housing sector is outperforming expectations. Circumstances are far from being back to the pre-pandemic normal. However, the latest stimulus package and with the vaccine distribution underway, and a very strong demand for homeownership still prevalent, robust growth is forthcoming for 2021.”
ACRE commentary: Home sales in Alabama increased for the sixth consecutive month in November, rising 23.3% year-over-year. The strong rebound in sales activity during the summer months has extended into the fall, with many buyers looking for more housing space due to more time spent at home. Low mortgage rates also played a significant role as they helped offset rising home sales prices, which increased almost 15% Y/Y in November. 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 33.8% in November.
Click here to view the entire monthly report.
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 November 1 – 30, 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.