September 2019: Montgomery Real Estate Market Update

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August surprised me,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “Our closed sales volume for August 2019 was $107 million compared to $85 million in August 2018. We had 241 closings in August 2019 compared to 169 for August 2018.
”Pending sales during August were another story, down a little compared to recent years. I believe that last year’s red tide still has residual effects, even a year later with respect to summer visitors returning. Our listing inventory remains strong with Downing-Frye holding almost a thousand listings in the area.”


July’s closed sales increased 7.1 percent to 829 closed sales compared to 774 closed sales during July 2018. On average, a home for sale in Collier County is shown 17 times before it sells. Broker analysts believe the less inventory people have available to view, the more properties they want to see. At the end of July, there were 5,200 homes on the market compared to 6,100 in July 2018. July’s median closed price was
$326,200 compared to $326,500 for July 2018. However, based on a rolling 12-month analysis, only condominiums priced above $2 million have seen a substantial increase in their prices, i.e., 13 percent. Closed sales activity was the highest in the Naples Beach area (34102, 34103, 34108), a 25 percent increase in overall closed sales and a 40 percent increase in single-family home closed sales compared to July 2018.


Inventory levels in the Bonita Springs and Estero market have continued to decrease over the last three years. While shortages traditionally drive up home prices, that’s not the case in this market, with properties that have remained consistently priced at market value. Closed sales of condominiums in July 2019 steadily increased across all price points compared to July 2018. This trend is expected to continue. Some rental amounts are higher than mortgage payments, so with the low interest rates, this market is seeing an increase in mortages especially with first time home buyers. “Long gone are the days of the winter sales season,” said Jerry Murphy, Downing-Frye’s Broker in Bonita Springs. “There is no ‘season’ anymore, we have continued interest here and sales activity all year round.”


Florida’s housing market reported higher median prices and rising inventory in 2Q 2019. Closed sales of single-family homes statewide totaled 85,017 in 2Q 2019, up 4.6 percent from the 2Q 2018 level. The statewide median sales price for single-family existing homes in 2Q 2019 was $265,000, up 3.3 percent from the same time a year ago, and for condo-townhouse properties during the quarter was $195,000, up 2.9 percent over the year-ago figure. Statewide closed sales totaled 34,128 during 2Q 2019, down 1.4 percent compared to 2Q 2018. Closed sales typically occur 30 to 90 days after sales contracts are written. In 2Q 2019, the median time to a contract was 41 days for single-family homes and 52 days for condo-townhouse properties. Inventory was at a 3.9-months’ supply in the second quarter for single-family homes and at a 5.7-months’ supply for condo-townhouse properties. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.0 percent for 2Q 2019.


Existing-home sales strengthened in July, a positive reversal after total sales were down slightly in the previous month. Total existing-home sales rose 2.5 percent from June to a seasonally adjusted annual rate of 5.42 million in July. Overall sales are up 0.6 percent from a year ago (5.39 million in July 2018). “Falling mortgage rates are improving housing affordability and nudging buyers into the market,” said Lawrence Yun, NAR’s chief economist. However, he added that the supply of affordable housing is severely low. “The shortage of lower-priced homes have markedly pushed up home prices.” The median existing-home price for all housing types in July was $280,800, up 4.3 percent from July 2018 ($269,300). July’s price increase marks the 89th straight month of year-over-year gains. Total housing inventory at the end of July decreased to 1.89 million, a 1.6 percent decrease from 1.92 million one year ago. Unsold inventory is at a 4.2-month supply at the current  sales pace, down from the 4.4 month-supply recorded in June and down from the 4.3-month supply recorded in July 2018.

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