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

Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 414 units during February, an increase in sales growth of 25.5 percent or 84 units from the same period last year. Two more resources to review: Quarterly Report and Annual Report.

For all of Huntsville’s area housing data, click here. 

Forecast: Closed transactions in February were 45 units or 12 percent above our monthly forecast. ACRE’s year-to-date sales forecast through February projected 696 closed transactions while the actual sales were 763 units, a favorable difference of 9.6 percent.

Home sales in Huntsville during February are up 25 percent from last year.

Supply: The Rocket City’s housing inventory totaled 2,598 units, a decrease of 21 percent from last February. New home inventory is up 87 units year-over-year while existing single-family inventory is down 353 units.

The inventory-to-sales ratio in February was 6.3 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during February (NSA). Huntsville continues to move in a favorable direction when it comes to its inventory-to-sales ratio. The market in February experienced a 0.7 percent decrease in inventory when compared to the prior month. Historical data indicates a typical 0.6 percent increase from January to February.

Demand: Residential sales in February increased by 19 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that February sales, on average (2011-15), increase from January by 15 percent. New home sales made up 21 percent of sales, up from 19 percent the previous February. Existing single family home sales accounted for 76 percent (down from 79 percent in February 2015) of total sales, while condos were 3 percent of sales (up from 2 percent during February 2015).

Pricing: The Huntsville median sales price in February was $169,950, a decrease of 1.1 percent from February 2015 and down 5.2 percent from the prior month. This month-over-month direction is consistent with historical data (2011-15) indicating that the February median sales price on average decreases from January by 1 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 February results show the most modest consumer home price expectations since late 2012,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “For consumers who think it’s a bad time to buy a home, whose share has trended up from its recent low last November, high home prices have been an increasingly contributing factor. A slower pace of home price appreciation may provide some relief for potential homebuyers, especially first-time buyers who couldn’t reap the benefits of selling a home at high prices to buy another one.” For the full story, click here.

Homes sold in Huntsville during February sold for an average of $191,267.

On average, homes sold in Huntsville during February spent 113 days on the market.

Supply in Huntsville during February stood at 2,598 units.

The median sales price for homes sold in Huntsville during February was $165,950.

There were 6.2 months of supply on the market in Huntsville during February.

Year-to-date home sales in February in Huntsville were up 21 percent over last year.

There were 414 units sold in Huntsville during the month of February.

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.