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 563 units during May, a growth in sales of 13.3 percent or 66 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. 

Home sales in Huntsville over the past five years have averaged 452 for the month of May. This May’s total was 24.6 percent above that number.

Forecast: Closed transactions in May were 42 units or 8 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through May projected 2,090 closed transactions, while the actual sales were 2,362 units, a favorable difference of 13 percent.

Supply: The Rocket City’s housing inventory totaled 2,798 units, a decrease of 6.5 percent from last May. New home inventory is up 210 units year-over-year, while existing single-family inventory is down 351 units.

The inventory-to-sales ratio in May was 4.9 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during May . Huntsville continues to move in a favorable direction when it comes to its inventory-to-sales ratio. The market in May experienced a 1.2 percent increase in inventory when compared to April. Historical data indicate a typical 0.2 percent increase from April to May.

Demand: Residential sales in May increased by 6.6 percent from April. This direction is consistent with seasonal patterns and historical data indicating that May sales, on average (2011-2015), increase from April by 17 percent. New home sales made up 20 percent of sales, unchanged from the previous May. Existing single-family home sales accounted for 77 percent of total sales, down from 78 percent in May 2015, while condos were 2 percent of sales, unchanged from May 2015.

Pricing: The Huntsville median sales price in May was $179,900, an increase of 7.1 percent from May 2015 and up 3.4 percent from the prior month. This month-over-month direction is consistent with historical data (2011-2015) indicating that the May median sales price on average increases from April by 2.4 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: “Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home-buying season gains momentum, the effect may be muted by May’s discouraging jobs report.” For the full report on home purchase sentiment, click here.

The average sales price for homes sold in Huntsville during May was $196,762.

On average, homes sold in Huntsville during May spent 91 days on the market.

There were 2,798 homes listed for sale in Huntsville during May.

The median sales price for homes sold in Huntsville during May was $179,900.

There were 4.9 months of supply on the market in Huntsville during May.

Year-to-date home sales through May in Huntsville rose 14 percent over last year.

There were 563 homes sold in Huntsville in May.

The Huntsville/Madison County Residential Monthly Report is developed in conjunction with the Huntsville Area Association of Realtors to better serve North Alabama consumers.