The Montgomery, AL metro area housing market in February 2025 presents a complex landscape with varied trends across different metrics. The Median Sales Price has increased to $261,200, reflecting a modest year-over-year (YoY) growth of 2.8%. This indicates a steady appreciation in home values, albeit at a slower pace compared to the Median List Price, which surged by 15.9% YoY to $285,000. This disparity suggests a widening gap between seller expectations and buyer willingness, potentially leading to longer negotiation periods.

In terms of Price Per Square Foot, the median price has risen to $137.14, marking an 8.4% increase YoY. Meanwhile, the Median List Price per square foot stands at $139.11, up by 4.7% YoY. These figures highlight a consistent upward trend in property valuations, although the list Price Per Square Foot is increasing at a slower rate than the overall list price, possibly indicating a shift in the types of properties being listed.

The number of Homes Sold in February 2025 was 302, a slight decline of 0.7% YoY. Pending Sales also decreased by 1.1% YoY to 453. This reduction in sales activity could be attributed to the increased inventory, which has grown by 17.2% YoY to 1,384 homes. The Months of Supply have significantly expanded by 70.0% YoY to 4.6 months, suggesting a shift towards a more balanced market, with more options available for buyers.

New Listings have seen a modest increase of 1.1% YoY, totaling 470. This uptick in New Listings, combined with the increased inventory, indicates a more competitive market environment. The Median Days on Market have risen by 9.0% YoY to 67 days, reflecting a slower pace of sales and potentially more discerning buyers.

The average sale to list ratio has slightly decreased by 0.7% YoY to 96.5%, indicating that homes are selling closer to their list prices, but with less frequency than in the previous year. The percentage of Homes Sold above list price has marginally declined by 0.2% YoY to 13.6%, while Price Drops have decreased by 0.4% YoY to 16.5%. These metrics suggest a market where sellers may need to adjust expectations to align with buyer demand.

Finally, the percentage of homes going off the market within two weeks has decreased by 8.4% YoY to 32.0%. This decline points to a slower market pace, where properties are taking longer to sell, possibly due to the increased inventory and higher list prices.

Overall, the Montgomery, AL housing market in February 2025 is characterized by rising prices and increased inventory, leading to a more balanced market with slower sales activity. Buyers have more options, while sellers may need to adjust pricing strategies to attract offers in this evolving landscape.