Midtown Montgomery Real Estate Market Report for May 2014
All-cash offers are an unusual real estate tactic, but often times are a winning strategy at the negotiating table, and are presently on the rise. The National Association of Realtors® reports market share of all-cash purchases has risen and currently makes up 33 percent of the market. This is a unique trend, especially since the market has experienced a decrease in distressed homes and investor activity.
Economists point out many reasons for this popular trend. One is restrictive lending standards have caused many buyers, especially wealthy ones, to forgo a loan. Another is the aging baby boom generation, many of whom are trading down and paying for their purchase with cash accumulated from decades of equity. Some also point to foreign buyers; home purchases by foreign buyers in the U.S. are increasing and those buyers don’t have the credit history in the U.S. to qualify for a loan.
None of those situations have significantly impacted the Montgomery market. For May, 24% of the sales were all-cash and averaged just $42,500. This indicates they were predominantly investor sales of distressed properties. Now let's look at the other May statistics for Midtown Montgomery.
Midtown Montgomery real estate sales statistics for May 2014, show the number of homes sold increased by 5.7% when compared to May 2013. The average sales price increased by less than 1% to $144,882 for the month. The median sales prices increased by 17%, and market times decreased by 4 days from May 2013. The highest selling price decreased by 5%, and the lowest selling home price decreased by 45% compared to May 2013.
| Midtown Montgomery | May 2014 | May 2013 |
| Homes Sold | 33 | 35 |
| Average Selling Price | $144,882 | $144,725 |
| Median Selling Price | $123,000 | $105,000 |
| Days On The Market | 126 | 140 |
| Highest Selling Price | $635,000 | $665,000 |
| Lowest Selling Price | $9,250 | $17,000 |
For the latest Midtown Montgomery 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.
Private mortgage insurance is required on loans that exceed 80% of the home’s value. For conventional loans, the premiums range from 0.5% to 1% annually. The PMI could add close to $100.00 a month to the payments on a $200,000 mortgage and over $200.00 a month on a FHA mortgage.
Tech savvy and always on the go, Millennial buyers—a blanket term that includes Generation Y and the
and knowing the right questions to ask, however, will expedite the process, boost your confidence, and help you make a wise decision.
Consider these suggestions along with your other normal efforts:
Additions to a home or other improvements that have a useful life of more than one year may be considered an increase to basis or cost of the home. Other increases to basis may include special assessments for local improvements like sidewalks or streets and amounts spent after a casualty loss to restore damage that was not covered by insurance.
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