Click here to view or print the entire September report compliments of the ACRE Corporate Cabinet.

Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 561 units in September, an increase in sales growth of 36.8 percent or 18 units from the same period last year. Year-to-date sales through September are 16.7 percent above 2014. Two more resources to review market: Quarterly Report and Annual Report

Forecast: Closed transactions in September were 141 units or 33.5 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through September projected 3,737 closed transactions while the actual sales were 4,392 units, a rise of 17.5 percent.

Huntsville area residential sales spiked 36.8 percent in September from the previous year and rose 3.3 percent from the prior month.

Supply: Huntsville housing inventory totaled 3,024 units, a decrease of 8.4 percent or 279 units from last September . New home inventory is down 16 units year-over-year while existing single-family inventory is down 268 units.

The inventory-to-sales ratio in September was 5.4 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be approximately 6.0 months during September (NSA). Huntsville was again one of Alabama’s most balanced markets in September. The market in September experienced a 2 percent decrease in inventory when compared to the prior month. This direction is slightly below the 0.9 historical increase in September inventory from the month of August.

Demand: Residential sales in September rose 3.3 percent from the prior month. This direction contrasts with seasonal patterns and historical data indicating that September sales, on average (2010-14), decrease from the month of August by 9 percent. New home sales made up 21 percent of sales compared to 22 percent from the previous September . Existing single family home sales accounted for 77 percent (up from 74 percent in September 2014) of total sales, while condos were 2 percent of sales (down from 4 percent in September 2014).

Pricing: The Huntsville median sales price in September was $169,000, an decrease of 0.5 percent from September 2014 and 7.4 percent below the prior month. This month-over-month direction is consistent with historical data (2010-14) indicating that the September median sales price on average decreases from the month of August by 0.4 percent. It’s important to note that pricing can fluctuate as the sample size of data (closed transactions) is subject to seasonal buying patterns so a broader lens as to pricing trends is appropriate. ACRE recommends contacting a local real estate professional to discuss pricing at the neighborhood level.

Industry Perspective: “Our forecast for the year is largely unchanged despite recent market volatility. Fundamentals are positive, suggesting potential for some improvement in the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “While core personal consumption expenditures experienced their weakest gain in more than four years in July, real consumer spending rebounded during the month and August auto sales were stronger than they have been in a decade. Consumers may get an added boost during the year from subdued inflation given the stronger dollar and low oil prices. Overall, we anticipate economic growth of 2.4 percent for 2015, up slightly from 2.1 percent in the prior forecast. Consumer and government spending as well as nonresidential and residential investment are expected to contribute to growth while net exports and inventory investment will likely pose headwinds.” For full report click HERE.

Homes spent an average of 102 days on the market in September, up slightly from last year.

Inventory was down to right above 3,000 units in September from last year, below the 2010 peak of 3,434 units.

Median sales price in Huntsville area for September stayed relatively the same compared to the prior year.

Huntsville continues to be one the state’s most balanced markets with 5.4 months of supply.

Huntsville year-to-date sales were up 16.7 percent over last year.

September’s 561 units sold was highest since the 2005 peak of 623 units.

Huntsville’s average sales price in September held steady compared to a year ago.

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Bryan Davis is the research/media Coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu.

The Huntsville/Madison County Residential Monthly Report is work product developed in conjunction with the Huntsville Area Association of Realtors to better serve North Alabama consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current available data. Real estate is local and statistics will fluctuate between areas within a city including subdivisions. ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.

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