Sales: According to the Montgomery Area Association of REALTORS, June home sales in the area decreased 15.7% year-over-year (Y/Y) from 708 to 597 closed transactions. Following seasonal trends, sales increased 4.37% from May. Sales are now down 7.4% 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 increased 9.5% year-over-year from 697 to 763 listings. Months of supply increased from 1.0 to 1.3, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The median sales price in June was $235,000, an increase of 6.8% from one year ago and a decrease of 0.3% from May. 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 June averaged 47 days on the market (DOM), 14 days faster than June 2021.
Forecast: June sales were 49 units, or 7.6%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 646 sales for the month, while actual sales were 597 units. ACRE forecast a total of 3,219 residential sales year-to-date, while there were 3,011 actual sales through June, a difference of 6.5%.
New Construction: The 82 new homes sold represent 13.7% of all residential sales in the area in June. Total sales increased 13.9% year-over-year, extending the area’s streak of Y/Y gains in new home sales to 3 consecutive months. The median sales price in June was $369,683, an increase of 18.2% from one year ago and an increase of 6.1% from May. New homes sold in an average of 65 days, 12 days faster than June 2021.
Statewide Summary: Home sales in the state declined in June as rising mortgage rates pushed more buyers from the market. Sales declined 13.1% year-over-year and are down 3.2% year-to-date. However, housing demand remains above pre-covid levels with June sales 6.6% above the 5-year average. Additional declines are likely in the months ahead, with a 5-10% slowdown expected from last year’s pace.
Home sales price growth moderated in June with the statewide median sales price rising 11.7% Y/Y, down from 17.5% in May and 16.2% in March. The statewide median sales price declined slightly (-0.3%) from the record high reached in May 2022. Going forward, slowing sales and rising inventory are likely to result in home price growth moderating to the 8-10% range.
Much-needed inventory arrived in June with statewide listings rising 15.4% from May and 29.0% from one year ago. Inventory is still relatively tight as the 12,843 properties listed for sale is 35.5% below the 5-year average of 19,915. Unsold inventory was at 1.8 months of supply, up from 1.2 one year ago.
National Summary: According to the National Association of Realtors (NAR), existing home sales declined for the fifth consecutive month in June, falling 5.4% from May (seasonally adjusted annual rate). Three of four regions of the country reported month-over-month declines while sales were down year-over-year in all regions, falling 14.2% from June 2021.
The median sales price for all housing types increased 13.4% Y/Y to a record high of $416,000, the 124th consecutive Y/Y gain. Properties sold in an average of just 14 days, the fastest pace on record. Inventory is slowly trending upwards from the lows seen during the post-pandemic housing boom. The 1,260,000 listings at the end of June increased 9.6% from May and 2.4% from one year ago. June’s 3.0 months of supply (MOS) increased from 2.6 during May and 2.5 one year ago.
Lawrence Yun, chief economist for NAR said, “falling housing affordability continues to take a toll on potential home buyers. Both mortgage rates and home prices have risen too sharply in a short span of time.”
Yun also commented on rising inventory saying, “Finally, there are more homes on the market. Interestingly though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
All-cash sales represented 25% of all closed sales in June, the same as the prior month and up from 23% one year ago. Second-home buyers and individual investors purchased 16% of June home sales, unchanged from May and up slightly from 14% one year ago.
Foreclosures and short sales accounted for less than 1% of June transactions, unchanged from May 2022 and June 2021.
Click here to view the entire monthly report.
The Montgomery Residential Monthly Report is developed in connection with the Montgomery Area Association of Realtors.