Montgomery, AL Area Real Estate Sales – First Quarter 2008

April 15th, 2008 categories: Market Reports, Montgomery

The Montgomery Alabama Area MLS covers Montgomery, Prattville, Wetumpka, Millbrook, Pike Road, and lots of towns in between. Here’s a look at how many homes sold in the greater Montgomery area in January, February, and March of 2008.

How will home sales for 2008 match up to prior years?  I think it’s obvious that Montgomery is like most cities around the US in that the peak of the seller’s market was in 2005Since 2005, fewer and fewer homes sold each year.  Year to year comparisons show this pretty clearly:

montgomery alabama real estate homes sold statistics

Here is a look at the percent change in the first quarter when comparing the same month to the prior year.  For example, for the entire Montgomery area,  359 homes sold in January 2005 and 426 sold in January 2006, for an increase of 18.7% [(426-359)/359].  Contrast that with the fact that in March 2008, only 416 homes were sold as compared to 521 in March of 2007.  This yields a decrease of 20% [(416-521)/521].  Here’s a three year comparison:

home sales montgomery alabama statistics trends

A large part of the problem is the rising inventory of homes for sale in the Montgomery area:

montgomery mls sales average home

Montgomery area homes just aren’t selling fast enough to soak up the inventory.  To put this into perspective, check out he ratio of homes sold to the inventory.  To get this, you take the total homes for sale in the Montgomery area in any particular month, and divide by the homes sold in that month.  For instance, in January 2008, there were 3,229 homes for sale, and 295 homes sold.  3,229 /295 is about 10.9.  If this number trends higher, it suggests a movement to a buyer’s market (i.e. lots of homes are for sale and not many are selling).  The opposite trend suggests movement to a seller’s. The first 3 months of 2008 show that ratio decreasing, so that is good news for Montgomery area home sellers, but we’re still a long way away from another seller’s market.  At times in 2005 this ratio was under 3.0.

montgomery homes real estate statistics trends 2008

Are you considering a move to the Montgomery, Prattville, or Wetumpka areas? Having trouble sorting through all of the info, to narrow it down to a city, then neighborhood, then the right house for you? Contact us, or call the number at the top of the page, we would be glad to be your local real estate agent.