The current data, especially the months of supply figure, suggests that the Montgomery housing market is leaning towards being a seller's market. However, the increased days on the market and higher inventory could be signaling a potential shift, emphasizing the need for buyers and sellers to stay informed about evolving market dynamics.
Montgomery has seen the job market increase over the last year. Future job growth over the next ten years is predicted to be 30.3%. With affordable home prices, lower taxes, and a low cost of living, Montgomery is also a great city to live in and invest in real estate.
How is the Montgomery housing market doing currently?
According to the quarterly report published by the Alabama Center for Real Estate (ACRE), in the third quarter of 2024, a total of 1,009 residential units were sold in Montgomery, reflecting a 10.8% decline from the corresponding period in 2022 when 1,131 units were sold. This dip is substantial and raises questions about the prevailing dynamics in the Montgomery housing market.
Comparing the data against historical averages unveils a broader perspective. The fourth-quarter sales figures are 33.8% below the 3-year quarterly average and 26.0% below the 5-year quarterly average, indicating a significant deviation from historical trends.
Median Sales Price Trends
The median sales price in Montgomery during the fourth quarter of 2023 was $226,337, marking a 5.3% increase from the same quarter in 2022. Contrary to the sales volume, the median sales price has shown an upward trajectory.
Comparing the median sales price against historical averages reveals a different story. The fourth-quarter median sales price is 8.9% above the 3-year quarterly average and 19.6% above the 5-year quarterly average. This data suggests an ongoing trend of price appreciation in the Montgomery housing market.
Average Sales Price and Market Trends
The average sales price in the fourth quarter of 2023 was $244,703, indicating a 2.9% decrease from the same period in 2022. However, this decline in average sales price needs to be analyzed in the context of historical averages.
Comparing the average sales price against historical data shows that the fourth-quarter average price is 3.0% above the 3-year quarterly average and 14.5% above the 5-year quarterly average. Despite a quarter-over-quarter decrease, the average sales price remains elevated when considering historical trends.
Days on the Market and Inventory
The average number of days on the market increased by 14.7%, reaching 68 days in the fourth quarter of 2023. Additionally, residential units available for sale surged by 18.2% compared to the same period last year, indicating a potential increase in supply.
Months of Supply and Market Balance
The market's balance is often assessed by the months of supply, calculated by dividing the quarterly average of inventory for sale by the current quarterly sales average. In the fourth quarter of 2023, this figure stood at 3.3 months, suggesting a market that leans towards the seller's side. However, a comparison with historical data shows a 23.4% increase above the 3-year quarterly average and an 11.3% decrease below the 5-year quarterly average, indicating potential fluctuations in market dynamics.
Are Home Prices Dropping in Montgomery?
Contrary to a decrease in average sales price, the median sales price has experienced an upward trend, indicating that overall, home prices are not consistently dropping. The market appears to be displaying a mix of trends, with certain segments experiencing appreciation while others face a decline.
Considering the current market dynamics, it might be a favorable time for buyers, given the potential increase in inventory and the moderate decrease in average sales price. However, individual circumstances and preferences play a significant role, and prospective buyers should carefully evaluate their specific needs and the overall market conditions.
Montgomery Alabama Housing Market Forecast for 2024
Zillow serves as a valuable source for assessing the current state and predicting the future trends of the housing market in Montgomery. As of December 31, 2023, the average home value in Montgomery stands at $135,250, reflecting a 2.1% increase over the past year. Homes in Montgomery are swift to go pending, with an average time of 22 days on the market.
Key Metrics (Data through December 31, 2023)
- For Sale Inventory: 701 homes
- New Listings: 177 listings
- Median Sale to List Ratio (November 30, 2023): 0.989
- Median Sale Price (November 30, 2023): $144,567
- Median List Price (December 31, 2023): $176,600
- Percent of Sales Over List Price (November 30, 2023): 21.5%
- Percent of Sales Under List Price (November 30, 2023): 55.8%
These figures provide a comprehensive snapshot of the Montgomery housing market, illustrating its dynamism and the factors influencing buying and selling trends.
Montgomery MSA Housing Forecast
In examining the Montgomery Metropolitan Statistical Area (MSA) housing market forecast for 2023 and 2024, it is evident that the region is poised for growth. According to the data, as of December 31, 2023, the forecasted change in home values is projected to be 2.1% by the end of 2024. This optimistic forecast positions Montgomery as a promising market for both buyers and sellers, indicating sustained momentum in the real estate sector.
The Montgomery Metropolitan Statistical Area encompasses counties in Alabama and plays a pivotal role in the state's housing dynamics. As of the specified base date, December 31, 2023, the MSA is anticipated to experience significant growth, further solidifying its position as a key player in the regional real estate landscape.
Note: All data and forecasts are subject to change based on evolving market conditions.
Investing in the Montgomery Real Estate Market: A Comprehensive Analysis
1. Population Growth and Trends
Montgomery's population growth and trends play a pivotal role in assessing the city's real estate investment potential. The city has experienced steady growth, with a burgeoning population that signifies a demand for housing. This sustained growth is indicative of a robust real estate market with opportunities for both short-term and long-term investments.
2. Economy and Jobs
- Diverse Economy: Montgomery boasts a diverse economy, with sectors such as manufacturing, healthcare, and government contributing significantly. A diversified economy is a positive indicator for real estate investors, providing stability and resilience against economic downturns.
- Job Opportunities: The presence of various industries translates to ample job opportunities, attracting a steady influx of residents. Low unemployment rates and job security contribute to a stable housing market, making Montgomery an attractive destination for real estate investments.
3. Livability and Other Factors
Montgomery's livability, including factors such as education, healthcare, and cultural amenities, adds value to its real estate market:
- Educational Institutions: Presence of reputable schools and higher education institutions enhances the city's appeal, attracting families and students, thereby supporting a consistent demand for housing.
- Healthcare Facilities: Access to quality healthcare is a key consideration for residents. A well-developed healthcare system contributes to the overall attractiveness of Montgomery for potential investors.
- Cultural Amenities: A vibrant cultural scene, including museums, parks, and entertainment options, contributes to the overall quality of life. This factor is vital for attracting a diverse range of residents, positively influencing the real estate market.
4. Rental Property Market Size and Growth
The rental property market in Montgomery is of significant interest to investors:
- Steady Demand: With a growing population and a diverse economy, the demand for rental properties remains robust. Investors can capitalize on this demand, especially considering the city's appeal to young professionals and families.
- Market Size: The size of the rental property market provides ample opportunities for investors to diversify their portfolios. From single-family homes to multi-unit complexes, Montgomery offers a range of options to suit various investment strategies.
- Growth Potential: Projections for the rental market's growth indicate a positive trajectory. Factors such as job opportunities, educational institutions, and the city's overall attractiveness contribute to sustained growth in the rental sector.
5. Other Factors Related to Real Estate Investing
Additional factors that make Montgomery an attractive destination for real estate investment include:
- Affordability: Montgomery's relatively affordable housing market compared to national averages is a key factor for investors seeking attractive entry points and potential returns.
- Infrastructure Development: Ongoing and planned infrastructure developments can enhance property values and contribute to the overall growth of the real estate market.
- Investor-Friendly Regulations: Understanding local regulations is crucial for real estate investors. Montgomery's investor-friendly environment, coupled with clear regulations, supports a favorable investment climate.
Considering the population growth, economic stability, livability factors, the size and growth of the rental market, and other favorable conditions, investing in the Montgomery real estate market presents a compelling opportunity for investors looking for a dynamic and potentially lucrative market.