Sales: According to the Montgomery Area Association of REALTORS, January home sales in the area increased 21.1% from 294 to 356 closed transactions. Following seasonal trends, sales decreased 27.8% from December. Two more resources to review: Quarterly Report and Annual Report.
For all Montgomery-area housing data, click here.
Inventory: Homes listed for sale decreased 51.4% year-over-year from 1,642 to 798 listings. Months of supply decreased from 5.6 to 2.2, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The median sales price in January was $185,000, an increase of 24% from one year ago and a decrease of 5.9% from December. 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 January averaged 85 days on the market (DOM), 6 days faster than January 2019.
Forecast: January sales were 57 units, or 13.8%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 413 sales for the month, while actual sales were 356 units.
New Construction: The 60 new homes sold represent 16.9% of all residential sales in the area in January. Total sales increased 66.7% year-over-year, extending the area’s streak of Y/Y gains in new home sales to 10 consecutive months. The median sales price in January was $294,397, an increase of 14.6% from one year ago and an increase of 1.6% from December. New homes sold in an average of 86 days, 8 days faster than January 2020.
NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased 0.6% from January (seasonally adjusted annual rate). Sales increased significantly from one year ago, rising 23.7%. Sales prices continued to grow at higher rates than before the pandemic, rising 14.1% year-over-year.
Lawrence Yun, chief economist for NAR said, “Home sales continue to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market. Sales easily could have been even 20% higher if there had been more inventory and more choices. Home sales are continuing to play a part in propping up the economy. With additional stimulus likely to pass and several vaccines now available, the housing outlook looks solid for this year.”
ACRE commentary: Home sales in Alabama increased for the eighth consecutive month in January, rising 17.2% year-over-year. The strong rebound in sales activity during the second half of 2020 has extended into 2021, with 21 of 24 markets in the state recording year-over-year gains in home sales during January. Buyers are incentivized by low mortgage rates, increasing their buying power during a time of rising sales prices, which increased 11.9% Y/Y in January. 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. Statewide inventory, however, continues to tighten, declining almost 40% year-over-year, reaching an all-time low of 10,815 listings.
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 January 1 – 31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results.
