Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 458 units during October, a rise in sales of 5.5 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.
Forecast: Closed transactions in October were one unit or 0.22 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through October projected 4,705 closed transactions, while the actual sales were 5,283 units, a favorable difference of 12 percent.
Supply: The Rocket City’s housing inventory totaled 2,618 units, a decrease of 13 percent from last October. New home inventory is up 61 units year-over-year, while existing single-family inventory is down 242 units.
The inventory-to-sales ratio in October was 5.7 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during October. Huntsville overall continues to move in a favorable direction when it comes to its inventory-to-sales ratio. The market in October experienced a 1 percent increase in inventory when compared to September. Historical data indicate a typical 2.8 percent decrease from September to October.
Demand: Residential sales in October decreased by 19.5 percent from September. This direction contrasts with seasonal patterns and historical data indicating that October sales, on average (2011-2015), increase from September by 1.1 percent. New home sales made up 21 percent of sales, unchanged from the previous October. Existing single-family home sales accounted for 76 percent of total sales, also unchanged from October 2015, while condos were 3 percent of sales.
Pricing: The Huntsville median sales price in October was $175,000, unchanged from October 2015 and down 8 percent from the prior month. This direction contrasts with historical data (2011-2015) indicating that the October median sales price on average increases from September by 4.6 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: “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate,” said Doug Duncan of Fannie Mae. “Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013, weighing on the index. However, this component of the HPSI (home purchase sentiment index) is volatile from month to month, and the firming trend in wage gains from the October jobs report, if sustained, may foreshadow an improving view in the near future.”
Click here to generate more graphs from the Huntsville October 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.