Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 400 units during January, a rise in sales of 14.6 percent or 51 units from the same month the previous year, when there were 349 total sales. Two more resources to review: Quarterly Report and Annual Report.
For all of Huntsville’s area housing data, click here
Forecast: Closed transactions in January were 50 units or 14 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s sales forecast for January projected 350 closed transactions, while the actual sales were 400 units.
Supply: The Rocket City’s housing inventory totaled 2,275 units, a decrease of 13 percent from the previous January. New home inventory was down 37 units year-over-year, while existing single-family inventory was down 288 units.
The inventory-to-sales ratio in January was 5.7 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during January. Huntsville overall continues to move in a favorable direction when it comes to its inventory-to-sales ratio. The market in January experienced a 4 percent decrease in inventory when compared to December. Historical data indicate a typical 1.3 percent increase from December to January.
Demand: Residential sales in January decreased by 19 percent from December. This direction is consistent with seasonal patterns and historical data indicating that January sales, on average (2012-2016), decrease from December by 25 percent. New home sales made up 27 percent of sales, up from 23 percent the previous January. Existing single-family home sales accounted for 70 percent of total sales, down from 75 percent, while condos were 3 percent of sales.
Pricing: The Huntsville median sales price in January was $169,900, down 3 percent from January 2016 and down 14.6 percent from the prior month. This direction is consistent with historical data (2012-2016) indicating that the January median sales price on average decreases from December by 5.6 percent. Pricing can fluctuate as the sample size of data is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional to discuss pricing at the neighborhood level.
Industry perspective: “We expect housing to remain resilient and continue its recovery in 2017, with affordability standing out as the industry’s greatest obstacle, particularly for first-time homeowners,” said Fannie Mae Chief Economist Doug Duncan. “Demographic factors, however, are positive. Our research shows that older millennials have begun to buy homes and close the homeownership attainment gap with their predecessors.”
Click here to generate more graphs from the Huntsville January Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.
The Huntsville/Madison County Residential Monthly Report is developed in conjunction with the Huntsville Area Association of Realtors to better serve North Alabama consumers.