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 622 units during August, a rise in sales of 14.5 percent or 79 units from the same period last year. Year-to-date sales increased 11 percent over 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 August were 80 units or 14.7 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through August projected 3,761 closed transactions, while the actual sales were 4,256 units, a favorable difference of 13 percent.

Year-to-date home sales in Huntsville, through August, are up 11 percent over the same period in 2015.

Supply: The Rocket City’s housing inventory totaled 2,625 units, a decrease of 15 percent from last August. New home inventory is up 92 units year-over-year, while existing single-family inventory is down 522 units.

The inventory-to-sales ratio in August was 4.2 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during August. Huntsville continues to move in a favorable direction when it comes to its inventory-to-sales ratio. The market in August experienced a 3.1 percent decrease in inventory when compared to July. Historical data indicate a typical 1.3 percent decrease from July to August.

Demand: Residential sales in August increased by 6.5 percent from July. This direction is consistent with seasonal patterns and historical data indicating that August sales, on average (2011-2015), increase from July by 5.6 percent. New home sales made up 24 percent of sales, down from 32 percent the previous August. Existing single-family home sales accounted for 74 percent of total sales, up from 65 percent in August 2015, while condos were 2 percent of sales, down from 3 percent in August 2015.

Pricing: The Huntsville median sales price in August was $186,125, an increase of 2 percent from August 2015 but down 2 percent from the prior month. This  direction is consistent with historical data (2011-2015) indicating that the August median sales price on average decreases from July by 2.7 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: “Consumers have a fairly optimistic 12-month outlook on housing at the end of the summer home-buying season, supported by increased job confidence and more favorable expectations regarding their personal financial situations compared with this time last year,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The return to a slight upward trend in the HPSI (Home Purchase Sentiment Index) during the spring and summer is, thus far, in line with our forecast, which calls for 4 percent growth in home sales in 2016 to the best level since 2006 and continued improvement for 2017.” For the full report, click here.

Click here to generate more graphs from the Huntsville August 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.