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

Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 434 units in October, an increase in sales growth of 13.6 percent or 52 units from the same period last year. Year-to-date sales through October are 16.3 percent above 2014. Two more resources to review: Quarterly Report and Annual Report

Forecast: Closed transactions in October were 18 units or 7 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through October projected 4,143 closed transactions while the actual sales were 4,826 units, a rise of 16 percent.

Compared to last October, Huntsville sales were up 13.6 percent in 2015 at 434 units.

Supply: Huntsville housing inventory totaled 3,009 units, a decrease of 5.7 percent or 183 units from last October. New home inventory is up 11 units year-over-year while existing single-family inventory is down 198 units.

The inventory-to-sales ratio in October was 6.9 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6.0 months during October (NSA). Huntsville was again one of Alabama’s most balanced markets in October. The market in October experienced a 0.5 percent decrease in inventory when compared to the prior month. This direction is slightly below the 2.3 percent historical decrease in October inventory from September.

Demand: Residential sales in October decreased by 22.5 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that October sales, on average (2010-14), decrease from September by 5.6 percent. New home sales made up 21 percent of sales compared to 23 percent from the previous October. Existing single family home sales accounted for 76 percent (up from 74 percent in October 2014) of total sales, while condos were 3 percent of sales (unchanged from October 2014).

Pricing: The Huntsville median sales price in October was $175,000, an increase of 4.2 percent from October 2014 and 2 percent above the prior month. This month-over-month direction contrasts with historical data (2010-14) indicating that the October median sales price on average decreases from September by 1.9 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.

The average sales price during October in Huntsville has been up and down over the past decade, with 2015 being an up year with a 2.5 percent increase.

The average number of days on the market for Huntsville housing dropped from over 115 last October to 89 in 2015.

Supply held steady in Huntsville during October, dropping just slightly to 3,009 units in 2015.

The median sales price during October, compared to last year, rose 4.2 percent in Huntsville.

Huntsville continues to be one of the state’s most balanced markets with an October months of supply at 6.9.

Year-to-date sales during October are 16 percent higher than the same period in 2014.

Residential sales are 40 percent above the 2010 trough of 309 units.

Industry Perspective: “Despite recent headwinds, which likely will slow economic growth compared to the first half of 2015, we see positive trends for consumer spending and housing heading into the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “Strong home price gains should help drive an increase in household net worth again in the third quarter, and, combined with low gasoline prices and mortgage rates, should support strong consumer spending throughout the rest of the year.” To read the full report, click here. 

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.