Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 583 units during April, a rise in sales of 10 percent or 55 units from the same month the previous year, when there were 528 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 April were 95 units or 19 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through April projected 1,703 closed transactions, while the actual sales were 1,993 units.
Supply: The Rocket City’s housing inventory totaled 2,281 units, a decrease of 17 percent from the previous April. New home inventory was down 83 units year-over-year, while existing single-family inventory was down 398 units.
The inventory-to-sales ratio in April was 3.9 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during April. The market in April experienced a 0.2 percent increase in inventory when compared to March. Historical data indicate inventory typically increases 3.6 percent from March to April.
Demand: Residential sales in April increased by 1.2 percent from March. This direction is consistent with seasonal patterns and historical data indicating that April sales, on average (2012-2016), increase from March by 9 percent. New home sales made up 23 percent of sales, up from 21 percent the previous April. Existing single-family home sales accounted for 75 percent of total sales, down from 77 percent, while condos were 2 percent of sales.
Pricing: The Huntsville median sales price in April was $175,000, up 0.6 percent from April 2016 and down 5 percent from the prior month. This direction contrasts with historical data (2012-2016) indicating that the April median sales price on average increases from March by 2.2 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: “The Home Purchase Sentiment Index returned to its longer-term trend line after reclaiming ground lost last month. This is aligned with our market forecast of about 3 percent sales growth in 2017,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Historically strong inflation-adjusted house price gains are tempering consumer sentiment, whereas consumer optimism regarding the ease of getting a mortgage reached a survey high. On balance, housing continues on a gradual growth track.”
Click here to generate more graphs from the Huntsville April 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.