Montgomery, AL Metro Area Housing Market Analysis - September 2024
The Montgomery, AL metro area housing market in September 2024 presents a dynamic landscape with notable shifts in pricing, sales, and inventory. The Median Sales Price has risen to $260,500, marking a 4.2% increase year-over-year (YoY). This upward trend in sales prices is complemented by an even more significant rise in the Median List Price, which stands at $254,900, reflecting an 8.5% YoY increase. Such figures indicate a robust demand for housing, despite broader economic uncertainties.
In terms of Price Per Square Foot, the median price has climbed to $135.50, an 8.6% increase YoY, while the Median List Price per square foot is $133.44, up by 5.2% YoY. These increases suggest that buyers are willing to pay more per square foot, indicating a competitive market environment.
Sales activity has also seen positive growth, with 361 Homes Sold, representing a 2.3% increase YoY. Pending Sales have similarly increased by 2.6% YoY, totaling 432. However, New Listings have decreased by 10.6% YoY, also amounting to 432, which may contribute to the heightened competition among buyers.
Inventory levels have expanded significantly, with a 15.8% YoY increase, bringing the total to 1,385 homes. This rise in inventory is reflected in the Months of Supply, which has surged by 40.0% YoY to 3.8 months. Such an increase in supply could potentially ease some of the competitive pressures in the market.
The Median Days on Market have increased by 9.0% YoY to 52 days, indicating that homes are taking slightly longer to sell compared to last year. The average sale to list ratio remains relatively stable at 97.7%, with a modest 0.4% YoY increase, suggesting that sellers are achieving close to their asking prices.
However, the percentage of Homes Sold above list price has decreased by 4.0% YoY to 13.9%, indicating a slight cooling in the market's competitive intensity. Additionally, the percentage of Price Drops has seen a marginal increase of 0.7% YoY to 20.7%, which may reflect sellers adjusting expectations in response to market conditions.
Finally, the percentage of homes going off the market within two weeks has decreased by 9.5% YoY to 36.1%, suggesting that buyers are taking more time to make purchasing decisions.
Overall, the Montgomery housing market is characterized by rising prices and increased inventory, with a slight moderation in the pace of sales. These trends suggest a market that is adjusting to changing economic conditions while maintaining a steady demand for housing.
