Archive for the 'Market Reports' Category

Montgomery, AL Area Home Sales Report

May 29th, 2009 categories: Market Reports, Montgomery

sign-that-reads-for-saleDid you see this article in the Montgomery Advertiser a few days ago?   Click on the following title to read the entire article:  Montgomery Area Home Sales Continue to Fall.

It reports that “home sales in Montgomery area declined for the 24th straight month in April, but the number of houses on the market dropped to one of the lowest levels in more than two years.”

So what’s that mean for us?  Well, we have to start beating prior year’s sales in order to have prices rise again.

I read a really good article on a Better Homes & Garden’s home blog about this subject. A guy named Nikolai Kolding studied sales from across the country, over a decade or so and concluded that rises or falls in average home prices were preceded by rises / falls in # of homes closed.

home-for-saleThe number of sales was compared by seeing if, for example, April 09 beat April 08 in number of homes sold. That, to me, is a critical finding, and it is something that you can apply locally. So many of these macroeconomic statistics are hard to apply to the Montgomery area, but I am watching current year vs. prior year very closely.

Check back soon for the most recent Montgomery Area MLS “sold” statistics.  If you’d like more conversation about this topic, comment below or give me a call at the number at the top of the page. I’d love to talk about with you, and I’d love to help you with the home-buying process.

Montgomery, AL Area Home Sales Statistics – 2nd Quarter 2008

July 19th, 2008 categories: Market Reports, Montgomery

A study of the Montgomery Alabama Area MLS shows that the residential real estate in Montgomery, Prattville, Wetumpka, Millbrook, Pike Road, etc. are trending to a more extreme buyer’s market. The 2nd quarter of 2008’s statistics prove this trend.

The first six months of 2008 have shown that the Montgomery area is way behind prior years when you look at the number of homes sold each month.  2006 and even 2007 kept pace with 2005.  2008 saw home sales fall off significantly :

montgomery real estate home sales history 2008

Here is a look at the percent change in the first quarter when comparing the same month to the prior year.  We are still in a buyer’s market in Montgomery, to be sure.  In fact, the trend in 2008 has been towards a more extreme buyer’s market.  In the first 6 months of 2006, we only had one month (April) that did not beat the prior year. In 2007 we had the beginnings of a downward trend.  As you can see below, in 2008, every single month has been lower when compared to 2007.  Drops like this that are in the range of 30% are huge.  Remember this feeling, this is what it feels like to be pushing to a buyer’s market.

homes sold in Montgomery in 2008

If we look at all of the homes on the market in the second quarter of 2008, we can see that the upward trend has leveled off. However, we still have more homes for sale in the Montgomery area right now than we did this time last year:

how many homes for sale in Montgomery alabama

Montgomery area homes just aren’t selling fast enough spark a move back to a balanced market. One way to view this trend is to compare the total “active” (homes for sale) listings in the Montgomery MLS. For instance, in June 2008, there were 3,493 for sale, and 381sold.  That gives us an active to sold ratio of 9.2.  We saw in the above chart that inventory has leveled off, but sales are off as well.  That keeps this ratio high, still well in the buyer’s market territory.

real estate homes sold trends montgomery prattville

Do you need help sorting through this info? What do all of these numbers mean to your specifically, and your own home search in the  Montgomery, Prattville, or Wetumpka areas?  How can you best use these trends to your advantage?  Contact us, or call the number at the top of the page, we would be glad to help you out.

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.