This week, I ran across a very interesting chart that describes the various “states” possible in any given real estate market:
A severe buyers’ market means prices are extremely negotiable and may be falling. In Midtown Montgomery, it means in general that only those really needing to sell should be on the market because buyers expect and are getting discounts on sales prices and many other give-backs with dollar signs attached.
So how’s the market? Taken as a whole, Midtown is still pretty much tough sledding for sellers. Overall, we see 11.01 months of homes available for sale. That means in theory that if no additional homes go on the market, it will take just over 11 months for all the existing listings to be sold. The good news is that the inventory of homes available for sale is down somewhat from last year and appears still to be declining.
But..and it’s a big but…Midtown is not one monolithic market. It is the sum of many varied markets. Each neighborhood and price range is a mini-market within the larger Midtown market as a whole. So when you ask me (or whomever), “How’s the market?,” don’t be surprised if the answer is, “Well, it all depends!”
Let’s look at a few specifics, starting with Cloverdale-Idlewild. In the past 12 months, 13 homes were sold. And today there are exactly 13 homes on the market for sale. Clearly, there is that theoretical 12-month supply of homes, which would label Cloverdale-Idlewild a severe buyers’ market.
But for a real severe buyers’ market, we need look no further than Center City (Garden District, the two Cloverdales and Edgewood) homes priced at $200,000 or more. Currently there are 42 homes for sale and only 20 sold in the past 12 months. It’s the perfect opportunity for an old-house lover to sell his/her/their smaller home and move up to the bigger, more expensive home of their dreams! (More later on why the best time to move up is in a down market.)
Hillwood, however, is quite a different story. In the past 12 months, 13 homes sold in Hillwood/Hillwood West. And there are only 8 homes on the market today. In theory, it will take less than 8 months for those homes to sell, so Hillwood is a balanced market. This means that buyers won’t find the “deals” there that the national media has been telling them they should expect.
If you are thinking about selling and/or buying in Midtown, be sure you have the “How’s the market…my segment of the market” conversation with your agent. Then act accordingly to avoid disappointment down the road.
Sandra Nickel has been listing and selling residential real estate for over 29 years, most with an intense focus on Montgomery’s Midtown neighborhoods. Sandra serves on the Mid-Alabama Coalition for the Homeless, the Cloverdale Business Coalition, Historic Southview, the Volunteer and Information Center, Landmarks Foundation and her own neighborhood Garden District Preservation Association.