Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.

Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

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

Montgomery AL real estate sales statistics for May show pending sales increased by 2% in 2009 compared to May 2008. The average sales price decreased by 25% to $112,384 while sold listings were down 13% from 2008.  Market times showed a increase of 1 day or 1% from 2008.





Market Times

Sales Price

May 2009





May 2008






The decline in Midtown's average sales price reflects the continued absorption of many inexpensive foreclosure properties.  Investors in our market have decided now is the time to buy, and they are grabbing up the low-priced houses and rehabbing them for resale.

For the latest Montgomery AL real estate market conditions in your area, please call me at 800-HAT-LADY or visit

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed.