WalletHub names Montgomery ‘most affordable’ city as housing market slows

Real estate sales in Montgomery seem to be cooling.
Published: Jun. 1, 2023 at 10:19 PM CDT
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MONTGOMERY, Ala. (WSFA) - The housing market is slowing in Montgomery. There are fewer houses on the market, and fewer are selling, according to the Montgomery Area Association of Realtors.

Montgomery Mayor Steven Reed tweeted he is proud “Montgomery was named the Most Affordable City in the U.S. for Home Buyers.”

That ranking is according to WalletHub, which put Montgomery at the top of a long list of “affordable” places.

“Affordability is really made up of three things. It’s home prices, mortgage rates and wages,” said Jeff Dickey, president of the Montgomery Area Association of Realtors.

He said the average home in Montgomery costs about $200,000.

“Affordability is one thing, but availability is another,” Dickey said.

Inventory is limited. There are about 530 fewer homes on the market compared to this time last year, about a 20% slash. This could be because last year was busier, and now the dust is settling.

“That can be part of it, but it also goes back to the interest rate and staying put where they are until the interest rate might make a little bit more sense for them,” Dickey said.

Interest rates are nearing 7%, depending on the loan.

Dickey said fears of a recession and the debt ceiling debate have caused some hesitancy.

“It just provides some uncertainty around us all and how that will affect economy and, of course for us, how that will affect the real estate market,” he said.

For people considering a home that are worried about interest rates, Dickey said they can always buy a house now and refinance if mortgage rates go down.

The realtor added his biggest tip for buyers is to use incentives wisely. One of the most popular right now is a rate buydown. There are also first-time homebuyer programs.

For sellers, he recommends patience.

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