Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 679 units during May, a rise in sales of 21 percent or 116 units from the same month the previous year, when there were 563 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 May were 121 units or 21 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through May projected 2,261 closed transactions, while the actual sales were 2,672 units.
Supply: The Rocket City’s housing inventory totaled 2,308 units, a decrease of 17 percent from the previous May. New home inventory was down 109 units year-over-year, while existing single-family inventory was down 369 units.
The inventory-to-sales ratio in May was 3.4 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during May. The market in May experienced a 1 percent increase in inventory when compared to April. Historical data indicate inventory typically increases 0.3 percent from April to May.
Demand: Residential sales in May increased by 16 percent from April. This direction is consistent with seasonal patterns and historical data indicating that May sales, on average (2012-2016), increase from April by 11.6 percent. New home sales made up 23 percent of sales, up from 21 percent the previous May. 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 May was $193,000, up 7.3 percent from May 2016 and up 10 percent from the prior month. This direction is consistent with historical data (2012-2016) indicating that the May median sales price on average increases from April by 4.9 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: “Once again, our full-year growth forecast remains intact as the economy grinds along, with the prospect of material policy changes appearing to be delayed,” said Fannie Mae Chief Economist Doug Duncan. “We expect consumer spending to resume its role as the biggest driver of growth in the second quarter amid improvements in the labor market. Positive demographic factors should continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial homeownership rates. However, the tight supply of homes for sale continues to act as both a boon to home prices and an impediment to affordability.”
Click here to generate more graphs from the Huntsville May 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.