Published On: 11.02.16 | 

By: Bryan Davis

Rocket City home sales through September up 10 percent over last year

Huntsville's housing inventory continues to decrease, making it more of a seller's market. (Bryan Davis/ACRE)

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 569 units during September, a rise in sales of 1.6 percent or nine units from the same period last year. Year-to-date sales increased 10 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. 

Huntsville home sales in September rose 11 percent over the previous September.

Huntsville home sales in September rose 1.6 percent over the previous September.

Forecast: Closed transactions in September were 84 units or 17 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through September projected 4,246 closed transactions, while the actual sales were 4,825 units, a favorable difference of 13 percent.

Supply: The Rocket City’s housing inventory totaled 2,595 units, a decrease of 14 percent from last September. New home inventory is up 61 units year-over-year, while existing single-family inventory is down 455 units.

The inventory-to-sales ratio in September was 4.6 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during September. Huntsville continues to move in a favorable direction when it comes to its inventory-to-sales ratio. The market in September experienced a 1.1 percent decrease in inventory when compared to August. Historical data indicate a typical 0.8 percent decrease from August to September.

Demand: Residential sales in September decreased by 8.5 percent from August. This direction contrasts with seasonal patterns and historical data indicating that September sales, on average (2011-2015), increase from August by 3.7 percent. New home sales made up 27 percent of sales, up from 20 percent the previous September. Existing single-family home sales accounted for 71 percent of total sales, down from 77 percent in September 2015, while condos were 2 percent of sales, down from 3 percent.

Pricing: The Huntsville median sales price in September was $189,900, an increase of 10.6 percent from September 2015 and up 2 percent from the prior month. This  direction contrasts with historical data (2011-2015) indicating that the September median sales price on average decreases from August by 1.1 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: “The decline in the HPSI (Home Purchase Sentiment Index) over the past two months from the survey-high in July of 86.5 adds a note of caution to our moderately positive housing outlook,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Downside changes came in particular from the HPSI components ‘mortgage rate direction’ and ‘good time to buy a house.’ In addition, the starter home tight supply and rising home prices as well as the unsettled political environment are likely giving many consumers a reason to pause or question their home purchase sentiment.” For the full report, click here.

Click here to generate more graphs from the Huntsville September 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.