Montgomery-area days on market drops to record low in May
Sales: According to the Montgomery Area Association of REALTORS, May home sales in the area increased 20.1% year-over-year (Y/Y) from 454 to 563 closed transactions, marking 12 consecutive months of Y/Y gains. Not following seasonal trends, sales decreased 6.48% from April. Sales are now up 31.17% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
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Inventory: Homes listed for sale decreased 51.9% year-over-year from 1,397 to 672 listings. Months of supply decreased from 3.1 to 1.2, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The median sales price in May was $200,000, an increase of 14% from one year ago and an increase of 3.8% from April. 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 May averaged 58 days on the market (DOM) a record low, 37 days faster than May 2020.
Forecast: May sales were 21 units, or 3.6%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 584 sales for the month, while actual sales were 563 units. ACRE forecast a total of 2,481 residential sales year-to-date, while there were 2,542 actual sales through May, a difference of 2.5%.
New Construction: The 62 new homes sold represent 11% of all residential sales in the area in May. Total sales decreased 16.2% year-over-year, stopping the area’s streak of Y/Y gains in new home sales at 13 consecutive months. The median sales price in May was $326,950 an increase of 18.5% from one year ago and a decrease of 3.2% from April. New homes sold in an average of 78 days, 30 days faster than May 2020.
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 May 1 - 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.