Montgomery, Alabama Housing Market

How much can you negotiate in Montgomery?

Only 40 out of every 100 homes for sale have found a buyer. The other 60 are still waiting. Your offer may be the only one on the table. About 1 in 5 sellers has already dropped their price. Each one has learned their first price was too high. Start below their new price, not their old one.

A typical Montgomery home takes 63 days to find a buyer. Half of them take even longer. Those sellers are paying to own a house they want to sell. Search for homes listed 90+ days ago. There are 852 homes for sale in Montgomery. That is 4.0 times the tightest month on record, but below the peak of 1,343. Supply is growing against last year.

What to do about it

• Start in 36104, 36107, and 36105. Those are the three softest ZIP codes in Montgomery.
• Filter for homes listed 90+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• In 36104 only 22 out of 100 homes have a buyer. You can lose a few offers there and still win.

Is now a good time to buy in Montgomery?

Asking prices are 11.7% below their Apr 2024 peak. You are not buying at the top. Prices stopped falling about a year ago. They are flat now. Waiting will not get you a cheaper house. It might still get you a more motivated seller. Montgomery prices have risen in 78 of the last 108 months. Drops here have been short and shallow. Buying in a slow month has rarely hurt a long hold.

The discount is already here. It is not getting bigger. Buy now while sellers are still weak. Waiting for a lower price stopped working a year ago.

Who will rent from you in Montgomery?

In Montgomery, 45 out of every 100 households rent. That is nearly half. That share has held steady for five years. Montgomery added about 800 renter households in five years. Renter households average 2.3 people. Two and three bedrooms fit the typical renter.

Households grew 1% in five years. The housing stock held flat. The two are moving in step. 14.1% of homes sit empty. Tenants have options. Budget extra weeks of vacancy between leases.

The median Montgomery household earns $57,847 a year. Incomes here have grown 3.4% a year since 2019. Incomes and home prices are rising in step. A typical home costs 3.8 times the median income. Locals can afford to buy here. Your exit buyer can be a family, not just another investor. A tenant on the median income can pay about $1,446 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast.

That is the market, not your address. Run an address through the app to see its rent estimate and cash flow.

What numbers should you underwrite a Montgomery deal with?

• Price growth to assume — +3.8%/yr. Montgomery has grown about 3.8% a year for five years and for ten. That is a durable trend, not a boom artifact. It is a fair long-run input. Prices rose 3.9% over the last year. That is a timing signal, not a trend.
• Months of carrying cost — 3. A typical home takes 63 days to sell. Budget that long when you exit or refinance.
• Odds you cut your price to sell — 1 in 5. About 19% of homes on the Montgomery market right now have already cut their asking price. Assume you are one of them when you sell. Do not underwrite an exit at your asking price.
• Comp on this, not median price — $111/sqft. The average listing runs +18% above the median. Luxury homes skew it. Comp your own size class per sqft.
• Competition when you exit — +13%. That is how much the number of homes for sale grew in a year. Your resale will face a bigger crowd than today's comps did.
• Price-to-income ratio — 3.8×. A typical home costs 3.8 times the median income. Locals can afford to buy here. Your exit buyer can be a family, not just another investor. Incomes and home prices are rising in step.
• Tenant rent ceiling — $1,446/mo. 30% of the median household income of $57,847. Rents above this line shrink your tenant pool fast.

Is Montgomery a buyer's or seller's market in 2026?

Yes, if you negotiate. Buyers have the upper hand in Montgomery right now. 40 out of every 100 homes for sale have a buyer, 19% of sellers have cut their price, and a typical home takes 63 days to sell.

Are Montgomery home prices going up or down?

Asking prices are 11.7% below their Apr 2024 peak. You are not buying at the top. Prices stopped falling about a year ago. They are flat now. Waiting will not get you a cheaper house. It might still get you a more motivated seller.

What price growth should I assume for Montgomery?

Assume +3.8% a year. Montgomery has grown about 3.8% a year for five years and for ten. That is a durable trend, not a boom artifact. It is a fair long-run input. Prices rose 3.9% over the last year. That is a timing signal, not a trend.

How fast are homes selling in Montgomery?

A typical Montgomery home takes 63 days to find a buyer. Half of them take even longer. Those sellers are paying to own a house they want to sell. Search for homes listed 90+ days ago.

Is Montgomery a renters' market or an owners' market?

In Montgomery, 45 out of every 100 households rent. That is nearly half. That share has held steady for five years. 14.1% of homes sit empty. Tenants have options. Budget extra weeks of vacancy between leases.

What rent can Montgomery tenants afford?

A tenant on the median income can pay about $1,446 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast. The median Montgomery household earns $57,847 a year.

Which Montgomery ZIP code has the most negotiating room?

36104. Only 22 out of 100 homes there have a buyer. 20% of sellers there have cut their price, and a typical home takes 86 days to sell.