About Montgomery County, AL

Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, rose 6.4 percent to 103.8 from a reading of 97.6 in July, and is 12.4 percent above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5.

Lawrence Yun, NAR chief economist, said not all contracts are turning into closed sales within an expected timeframe. "The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules," he said. "No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month."

Let's take a look at the September sales statistics to see how the Montgomery AL real estate market looks:

Montgomery AL real estate sales statistics for September show pending sales decreased by 30% in 2009 compared to September 2008. The average sales price decreased by 39% to $89,614 while sold listings were down 8% from 2008. Market times remainded consistent with 2008.

It is important to note that 15 of the closed sales were foreclosures at an average price of $33,853. With these 15 sales removed from the total, September 2009's average sales price was $148,394, a slight increase over 2008.

Midtown Montgomery	Pending Sales	Sold Listings	Average Market Times	Average Sales Price
Sept 2009	35	34	84	$89,614
Sept 2008	50	37	84	$147,114

Investors are snapping up foreclosures because they believe that prices have hit bottom and they are eager to build their portfolios before the anticipated recovery.
Remember, there are only a few weeks left to benefit from the $8000 first-time home buyer tax credit. Give us a call to make your dream home a reality!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.

Buying Montgomery foreclosures now is smart. Today the interest rates on mortgage are low and the prices of homes, bungalows, manors, estates, etc have dropped. On a $100,000 home, you will pay below $400 on mortgage payments alone and the interest rates are well below 5 percent. Buying Montgomery foreclosures can save you loads of cash. If you are buying foreclosed homes as an investment and to make money in renting, thus now is the time to start spending. You can save 20 to 50 percent on foreclosed property around Montgomery, which means you can rent the property to make your money back quickly. Recently, news stations online reported that Montgomery residents are part of the crowd of people losing their homes to foreclosure. Yet Montgomery seems to be in better shape than some of the other states, like California. In Montgomery only one of every 519 people are losing their home to foreclosure. Alabama foreclosures is currently ranked the 42nd on the list of foreclosures. This is perhaps because the economy is in better standings, since the industries are strong and the economy is growing. People do not have to worry about saving 1 percent because the average sales on homes are below $150,000. Lenders in Alabama also work hard to help people keep their homes rather than wait until the last minute and repossess the home. Thus, the number of foreclosed property is not succeeding the number of foreclosure property in some of the other states. Right now, those who buy homes or commercial property in Montgomery can save up to 20% on estates, manors, bungalows, and other property. In February, foreclosed sales estimated to 146, average sales were slightly over $209 thousand. In Montgomery, around 200,000 people live in the area. Most of the median population makes over thirty-five grand. This probably explains why over 600 properties are on the Montgomery foreclosures list. Real estate agents, investors, and many others are searching for property through the Montgomery foreclosure list, so if you are looking for property it pays to start looking now since you may lose out on some fabulous deals. Investors know how to shop, and they will often look for outstanding deals on foreclosed property and they will buy them out before the next potential client arrives. The latest news as of April 06, 2009 is that there are 69 Montgomery Foreclosures that have been added to the existing list of foreclosures.

Buyer's often find themselves watching a property for a price reduction. Although getting the best deal possible when purchasing Montgomery real estate is important, it is not the only factor that determines monthly payments on a home. Rising interest rates nearly diminish the positive aspects of waiting for prices to drop.

Most people are familiar with the basic trends in real estate that have been affected by the United States economic crisis. The listing prices of homes have been steadily declining over the past couple years. This has put people looking to purchase Montgomery real estate at an advantage over those trying to sell. People have best described this as a buyer's market due to the low property prices and reasonable interest rates. However, the decline in prices is stabilizing while interest rates are beginning to inch up. It is becoming more and more popular for investors to make offers on properties, sometimes sweeping the property away from home buyers. Could buyers begin loosing their advantage? Today, properties that are correctly listed at a reasonable asking price are not being reevaluated and reduced as often. These are some of the factors that prove lower Montgomery real estate prices are not always worth the wait.

Buyer's should not be waiting for interest rates to continue declining, especially since real estate and economy experts are predicting that the lowest rates have come and gone. This is not necessarily a horrible thing. Rates are still lower than historical highs, which exceed 6.00%. With the new administration trying to bring back the economy, many analysts see a period of severe inflation in our future. Meaning interest rates are likely to jump even higher. The Federal Reserve introduced a program to help control interest rates on home loans. For example, the rates for a thirty year fixed-rate loan have been consistently ranging from 4.50% to 5.00%. Now, rates for this type of loan and the rates of other types of real estate loans are beginning to exceed their more reasonable range. Therefore, increasing interest rates may start rushing your desired closing date.

At the end of May buyers, who have been procrastinating by waiting for lower interest rates or price reductions, learned their lesson the hard way. At the end of the month interest rates went up about .50%-1.00%. Increasing interest rates defeats the purpose of waiting for [city] real estate prices to drop. Higher interest rates decrease the overall affordability and increase the monthly payments, especially when the price of the desired home does not budge.

Bottom line, it is not a time to be waiting around. Time is running out to take advantage of the current real estate market and loan programs being offered by the government. For instance, first time home buyers have until December 1^st, 2009 to close on their home if they want to be eligible for a maximum tax rebate of $8,000 dollars. Since interest rates are expected to increase, waiting for real estate prices to drop is not worth the wait. Don't procrastinate. You might unintentionally pass up a piece of gold trying to find a diamond.

Search all Montgomery real estate and homes for sale by visiting HatTeam.com.

Selling your own home might sound like a good idea at first, but many Montgomery FSBO (for sale by owner) sellers quickly realize they've gotten in over their heads or may have sold their home for much less than they would have had they worked with a Realtor®.

The 2008 NAR Profile of Home Buyers and Sellers found that two-thirds of "For Sale By Owner" (FSBO) sellers found some aspect of the home sale to be difficult.

Twelve percent of sellers who knew the buyer thought that getting the price right was the hardest task. Among FSBO sellers who didn't know the buyer, 16 percent found it difficult to sell within the time planned, 15 percent found fixing up the home arduous, and 12 percent found it difficult to get the price right.

Statistics also show 25 percent of FSBO sellers took no action to market their home and 72 percent didn't offer incentives to attract buyers?

If you are a Montgomery FSBO seller and want to discuss other missteps FSBO sellers risk when attempting to go it alone, give me a call. I am glad to talk with you.

Learn how I can help you sell your Montgomery home by visiting HatTeam.com.

What's the value of your Montgomery home?