A few weeks ago, we looked at the Montgomery market as a whole and found just short of a 5 month supply of homes and a average sold price of $171,272 for the month of September. Visit: Central Alabama Market Update–Fall 2018.We all know that real estate can vary considerably by neighbornood and area, so earlier this year we looked at market trends for the Wetumpka area including downtown and surrounding areas (zip code 36092). Visit: Wetumpka Area Market Trends–Year to Date (through May 2018). It’s time for an update to see how the more current information on the Wetumpka market compares with earlier this year and with the overall Montgomery area.
It looks like the Wetumpka Area continues to be more toward a sellers market than the Montgomery Market as a whole. Wetumpka has less than a 4 month inventory of single family residential homes and and is averaging about 90 days on the market from lisiting to closing Also, although the average sold price of home is Wetumpka is below the average sold price in the overall Montgomery area market, prices are moving upward!
What does this mean?
If you’re a Wetumpka homeowner looking to sell, now looks like a great time to get that home on the market! If you are thinking about buying a home in Wetumpka, you may want to consider stepping up your plans to get on board!
Data pulled from the Montgomery Area Association of Realtors on 10-15-2018 based on the period 1-1-2018 through 9-30-2018. Data Information deemed reliable but not guaranteed. Data focused on zip code 36092 which includes downtown Wetumpka and surrounding areas. If you are interested in Wetumpka 36093 or any other area zip code or neighborhood, let me know and I’ll send you a free report: Free Market Report for Your Neighborhood!
The Central Alabama real estate market continues among the most affordable and generally stable markets in the US. The average home in our Central Alabama area sold for $171,272 in September.¹ It appears that sold prices may be on the rise, about 3.3% more in September compared to just last month (August 2018), BUT they are still under 1% higher than September last year 2017.
While many other parts of the country continue to experience major price increases along with lack of inventory, the Central Alabama market overall is more in balance with realatively stable prices adjusting for seasonal variation and a hint of a sellers market–maintaining close to a 5 month supply of homes. Average days on the market in the Central Alabama region had been hoovering around 90 days for quite some time, but this past month, it edged up to 102 days. Over half (57%) of the homes sold in under 90 days, but nearly 18% of homes that closed in September were on the market over six months.¹ It is possible that as inventories are lower, additional properties that have been on the market longer periods are selling and causing the average days on market calculation to increase.
Data from Montgomery Area Association of Realtors, MAAR MLS only, September 2018 as of October 1, 2018.
When looking at market trends it’s important to look at year to date information and to compare the same time periods in previous years. We are all familiar with the impact of seasonal and even monthly variations on both housing supply and buyers in the marketplace. In our area, our home sale activity varies seasonally, but not as dramatically as many areas of the country. According to the data through August, the actual Montgomery area home sales are closely aligning with the Alabama Center for Real Estate (ACRE), Culverhouse College of Business at the University of Alabama monthly projections for homes sold in the Montgomery area, suggesting a relatively stable and predictible market²:
ACRE data shows that January and February are expected to have the fewest home sales in our area. While this year started out slightly below the monthly projections, several of the following months exceeded the projections. You can also see from the monthly data and projections that the lowest number of sold homes occurs early in the year, with the increase in spring market activity in 2018 beginning as early as March and peaking in June. By the end of August, 3226 residential units were actually sold, slightly over the projected year to date of 3192 by 34 units. Projections from September through December 2018 reveal an expected seasonal decline in homes to be sold, with a projected 1445 additional homes sold before the end of the year. As we close out 2018, we will keep an eye on how the market actually performs and update on expectations for 2019.
What does this mean?
Although our area real estate market is relatively stable, there is a tendency toward a seller’s market and relatively low inventories with slightly increasing prices in the Montgomery area. Regardless of the time of year, there is an active real estate market with buyers looking to purchase a home year round. If you are thinking about selling in our area, the best time to sell is when you are ready!
For buyers, this is a great time to make a move to buy a home. Prices here are relatively steady and there has not been the pricing frenzy and multi-offer competitive buying situation that have been experienced in many areas of the country causing prices to go incredibly high. This means that you can place an offer to purchase a home with more confidence that a reasonable offer will be accepted and be in a position to build equity for the future. While no one can guarantee which direction the market will actually go, the Central Alabama area market is relatively stable and affordable.
Keep in mind that markets vary by neighborhood. If you are interested in a more detailed breakdown of market trends by a particular zip code or neighborhood of interest , let me know and I’ll send you a free report: Free Market Report for Your Neighborhood!
¹Montgomery Area Association of Realtors, Multiple Listing Service, September 2018 residential sales data (pulled October 1, 2018).
²The University of Alabama, Culverhouse College of Commerce, Alabama Center for Real Estate, Montgomery Area Real Estate Sales Forecast, August 2018 update.
When you put your home up for sale, one of the best ways to determine the asking price is to look at comparable sales. There’s rarely a perfect apples-to-apples comparison, so a pricing decision often relies on comparisons to several recent sales in the area. Here are five criteria to look for in a sales comparison.
Location: Homes in the same neighborhood typically follow the same market trends. Comparing your home to another in the same neighborhood is a good start, but comparing it to homes on the same street or block is even better. When dealing wih unique properties and rural properties, setting a value can get complicated. Home valuation models typically vary greatly on these homes,
Date of sale: It varies by location, but housing markets can see a ton of fluctuation in a short time period. It‘s best to use the most recent sales data available.
Home build: Look for homes with similar architectural styles, numbers of bathrooms and bedrooms, square footage, and other basics.
Features and upgrades: Remodeled bathrooms and kitchens can raise a home’s price, and so can less flashy upgrades like a new roof or HVAC system. Be sure to look for similar bells and whistles and home condition.
Sale types: Homes that are sold as short sales or foreclosures are often in distress or sold at a lower price than they’d receive from a more typical sale. These homes are not as useful for comparisons. The same may apply to sales between family members.
Let us help you price your home right the first time around ! You might be surprised at what your home is worth! For a general idea of your home’s value, hop on over to my automated home valuation and see what it says: Instant home value estimate
We all know that it has been a tough time for most sellers nationwide over the past few years, but many areas are moving toward a balance of homes available to eligible buyers or even a home shortage.Our area has maintained low prices and a plentiful inventory, but it looks like the Prattville area in particular is seeingrelatively strong home buying activity and reduction in inventory.
Area prices up, but still well below the national average
Overall in the Prattville real estate market, conditions are becoming more balanced for buyers and sellers, and look to be tipping in favor of home sellers.More homes in Prattville are selling and at a higher average price compared to a year ago. Although there appears to be an upward trend in the average single family residential home sale price in the area over last year, our area home prices for available listings remain well below the national average of $240,700 for the end of second quarter 2016.(http://realtormag.realtor.org/daily-news/2016/08/11/median-home-price-tops-1-million-here)
Based on statistics from the Montgomery Area Association of Realtors, Multiple Listing Service (MLS), in August 2016, Prattville saw a total of 33 single family residential home sales for an average unit cost of $246,900Although home sales for August 2015 were at a similar pace (30 sales) they were at a significant lower average price per sold unit of $177,082 a year ago.
Selling faster, but still much slower than the national average
Average days on the market for Prattville homes that have sold,has remained relatively low for the area over the past year at fewer than 80 days.Available single family residential homes on the market (current active listings) averaged 85 days on the market. Our area and Alabama in general, however, are lagging behind the nation in days to sell.Many states had median days to sell at fewer than 31 days.Only Alabama and Wyoming had a median of over 90 days from listing to home sale according to an article published recently by the National Association of Realtors: http://economistsoutlook.
Inventory trending downward
Our local MLS data also show that August 2016 was marked by a decrease in the number of single family residential listings in the Prattville (126 compared to 163 in August 2015.)Based on the rate of sales, the inventory of available single family residential homes is only about a 4 month supply.A six month housing supply is considered a balanced market, with a supply less than six months favoring sellers.
I provide expert real estate services to residential buyers and sellers in the Central Alabama area, including Prattville and the surrounding communities. Contact me today for more information on area real estate and for professional assistance navigating this complex home market.Contact me for a complimentary buyer or seller consultation.