According to the current data, particularly the months of inventory figure, the Montgomery Housing Market leans towards being a buyer’s market. The increased number of days on the marketplace and the higher inventory indicate that the market is shifting.
Montgomery’s job market has grown over the past year. The future job growth is expected to be 30,3% over the next ten years. Montgomery has affordable home prices and low taxes. It is also an ideal city for real estate investment and living.
What is the current state of the Montgomery real estate market?
According to a quarterly report by the Alabama Center for Real Estate, in 2024, 1,009 residential homes were sold in Montgomery. This represents a decline of 10.8% from 2022 when 1,131 houses were sold. This significant drop raises concerns about the current dynamics of the Montgomery real estate market.
When you compare the data to historical averages, a broader perspective is revealed. The fourth quarter sales figures are 33.8% lower than the average quarterly figure for the past three years and 26.0% less than the average quarterly figure for the last five years, which indicates a significant departure from historical trends.
Median Sales Price Trends
Montgomery’s median sales price for the fourth quarter of 2023 was $226.337. This represents a 5.3% rise from the same quarter 2022. In contrast to sales volume, median sales prices have shown an upward trend.
A completely different picture emerges when comparing median sales prices to historical averages. The median sales price for the fourth quarter is 8.9% higher than the average quarterly price over the past three years and 19.6% more than the average quarterly sale in the last five years. This data indicates a continuing rising trend in the Alabama real estate market.
Market Trends and Average Sales Prices
The average sales price in the fourth quarter of 2023 was $ 244,703, a 2.9% drop from the same period in 2022. This decline in average price must be considered in historical averages.
Comparing average sales prices with historical data, the fourth quarter average is 3.0% higher than the 3-year average quarterly price and 14.5% more than the 5-year average quarterly price. Even though the average price has decreased from quarter to quarter, it remains high compared to historical trends.
Days of Market and Inventory
The average days spent on the market increased from 68 to 14.7% in the fourth quarter of 2023. Residential units for sale increased by 18.2% in comparison to the same time last year. This indicates a possible increase in supply.
Market balance and supply for the Month
Market balance is often measured by the number of months available, which can be calculated by dividing the quarterly inventory average by current quarterly sales. This figure was 3.3 months in the fourth quarter of 2023. This suggests a market with a strong seller’s bias. Historical data shows a 23,4% increase over the average quarterly value for the past three years and an 11,3% drop below the average quarterly value of the last five years, indicating that the market may be experiencing fluctuations.
What is the impact of home prices in Montgomery?
In contrast to the decline in the average sale price, the median cost is on an upward trend. This indicates that home prices stay high consistently. The market is showing a mixture of sensations. Some segments are experiencing an increase in value while others are facing a decrease.
It may be an excellent time to buy amid the current market dynamics, considering the possible increase in inventory and the modest decrease in the average sales price. Individual circumstances and preferences are essential, so prospective buyers must carefully assess their needs and market conditions.
Montgomery Alabama Housing Market Forecast 2024
Zillow is an excellent tool for assessing and predicting future trends in the Montgomery housing market. By December 31st, 2023, the average home price in Montgomery will be $135.250. This represents a 2.0% rise over the last year. Montgomery homes are quick to sell and spend an average of 22 days in the market.
Critical Metrics Data through December 31st, 2023
- For Sale Inventory: 701 homes
- New Listings 177 listings
- Median Sales to List Ratio (November 30th, 2023): 0.98
- Median Sale Price (November 30th, 2023): $144,567
- Median list price (December 31st, 2023): $176.600
- Percentage of sales over list price (November 30th, 2023): 21.5%
- Percentage of sales below list price (November 30th, 2023): 55.8%
These figures give a complete picture of the Montgomery Housing Market, showing its dynamism and the factors influencing buying and selling patterns.
Montgomery MSA Housing Forecast
The housing market in the Montgomery Metropolitan Statistical Area is expected to grow by 2023 and 2024. The data shows that as of December 31st, 2023, home value changes are expected to be 2,1% at the end of 2024. This optimistic forecast shows Montgomery is a market with much potential for buyers and sellers.
The Montgomery Metropolitan Statistical Area includes counties in Alabama and plays a vital role in the state’s housing dynamics. The MSA will experience significant growth as of December 31st, 2023. This will further cement its position as an important player in regional real estate.
A Comprehensive Analysis of the Montgomery Real Estate Market
Population Trends and Growth
The growth of Montgomery’s residents and its trends are essential factors in assessing real estate investment opportunities. The city is experiencing steady growth with an exploding population, which indicates a need for housing. This continued growth means a robust market for real estate, with both short-term and long-term investment opportunities.
Economic and Job Opportunities
- Diverse economy: Montgomery has a diverse economic base, with significant contributions from manufacturing, healthcare, and government sectors. Real estate investors should consider a diversified economy as it provides stability and resilience during economic downturns.
- Job Opportunity: The existence of diverse industries translates into ample job opportunities that attract a steady flow of residents. Montgomery’s stable housing market results from low unemployment rates, job security, and a tough economy.
Livability and other factors
Montgomery’s livability – including education, healthcare, and cultural amenities – adds value to the real estate market.
- Educational Institutes: Reputable educational institutions and schools enhance a city’s appeal. This attracts families and students and supports a constant demand for housing.
- Health Care Facilities: Residents are concerned about access to high-quality healthcare. A well-developed healthcare infrastructure enhances Montgomery’s attractiveness to potential investors.
- Cultural amenities: A vibrant culture, which includes museums, parks, and entertainment options, adds to the quality of life. This is important for attracting residents from various backgrounds and positively influencing the real estate market.
Rental Market Size and Growth
Investors are interested in Montgomery’s rental market.
- Stable Demand: Due to a diverse and growing economy, rental property is in strong demand. This demand is an excellent opportunity for investors, especially when considering the city’s appeal to families and young professionals.
- Market size: The size and diversity of the rental market offer investors many opportunities to diversify their portfolios. Montgomery has many investment options, from single-family houses to multi-unit buildings.
- Growth Potential: The projected growth of the rental market is buoyant. The rental market is influenced by factors such as the availability of jobs, the quality of educational institutions, and the city’s overall attractiveness.
The Other Factors of Real Estate Investment
Montgomery is a great place to invest in real estate because of:
- Affordability – Montgomery’s affordable housing market attracts investors looking for entry points with potential returns.
- Infrastructure Development Ongoing or planned infrastructure development can increase property values and contribute towards the growth of the real estate market.
- Investor Friendly Regulations: Understanding the local regulations is essential for real estate investors. Montgomery’s investment-friendly environment and clear rules support a favorable climate.
Montgomery is an excellent market for real estate investors. Population growth, economic stability, livability, size and development in the rental market, and other favorable factors make it a good investment.