After holding fairly stable for a year, pending home sales declined in the face of job losses and an eroding economy, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell 4.0 percent to 82.3 from a downwardly revised reading of 85.7 in October, and is 5.3 percent below November 2007 when it was 86.9. The current index is the lowest since the series began in 2001.
Lawrence Yun, NAR chief economist, said a weakening was inevitable. "Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November," he said. "December's housing market activity could be comparably lower due to ongoing problems in the economy, so a real estate-focused stimulus plan is urgently needed."
Let's take a look at the sales statistics for 2008 to see how the Montgomery AL real estate market looks:
Montgomery real estate saw pending sales decrease by 18% in 2008 compared to 2007. The average sales price dropped 4% to $143,536 while sold listings were down 27% from 2007. Market times showed a decrease by 4 days over 2007.
| Midtown Montgomery |
Pending Sales |
Sold Listings |
Average Market Times |
Average Sales Price |
| 2008 | 553 | 405 | 89 | $143,536 |
| 2007 | 678 | 556 | 93 | $150,089 |
The good news is that buyer activity has increased substantially the fist two weeks in January. This will result in stronger sales and, hopefully, indicate a turnaround.
For the latest Montgomery AL real estate market conditions in your area, please call me at 800-HAT-LADY or visit HomesForSaleInMontgomeryAlabama.com.
Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed.
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