Alabama residential listings seem to be in short supply compared to a year ago. In fact, the numbers of homes for sale in the residential real estate sector in Montgomery are down about 9.5 percent. The Montgomery Area Association of Realtors (MAAR) says demand is definitely is outdoing supply when it comes to single family homes. Fifty-three purchases actually closed this January — more than 18 percent below projections by the Alabama Center for Real Estate (ACRE).
As for 2018, ACRE is predicting residential sales in Montgomery to be in the neighborhood of more than 4,600. In 2017, that number was 4,400. But year-to-year supply is down 9.5 percent. When inventory is in short supply, sales are as well. So, single family homes stayed on the market for about 113 days in January this year as opposed to an average of 125 when looked at over five years.
The formula realtors use to calculate supply is dividing the number of homes for sale by the sales volume each month. That number equals how many months of supply there is likely to be. The magic number for many in the real estate business is six months, which gives buyers and sellers a pretty equal footing.
The real estate market is a cyclical one. These numbers are only an indication of what might happen in the Montgomery area of Alabama. There are other factors at play that could change the numbers completely. Buyers and sellers thinking of doing deals in real estate might benefit from legal counsel at every step of the way. Real estate transactions can be volatile and an experienced attorney may be able to steer his or her clients in the right direction when making such significant financial decisions.
Source: labamanewscenter.com, “Residential listings in Montgomery area down 9.5 percent from one year ago“, Acre Research, March 1, 2018