Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 450 units during November, a rise in sales of 15 percent or 60 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 November were 26 units or 6 percent below the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through November projected 5,129 closed transactions, while the actual sales were 5,733 units, a favorable difference of 12 percent.
Supply: The Rocket City’s housing inventory totaled 2,498 units, a decrease of 12 percent from last November. New home inventory is up 25 units year-over-year, while existing single-family inventory is down 359 units.
The inventory-to-sales ratio in November was 5.6 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during November. Huntsville overall continues to move in a favorable direction when it comes to its inventory-to-sales ratio. The market in November experienced a 4.6 percent increase in inventory when compared to October. Historical data indicate a typical 0.5 percent decrease from October to November.
Demand: Residential sales in November decreased by 1.7 percent from October. This direction is consistent with seasonal patterns and historical data indicating that November sales, on average (2011-2015), decrease from October by 9.3 percent. New home sales made up 30 percent of sales, up 8 percent from the previous November. Existing single-family home sales accounted for 67 percent of total sales, down from 75 percent in November 2015, while condos were 3 percent of sales.
Pricing: The Huntsville median sales price in October was $190,375, up 9 percent from November 2015 and up 9 percent from the prior month. This direction is consistent with historical data (2011-2015) indicating that the November median sales price on average increases from October by 1.7 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: “The HPSI (home purchase sentiment index) fell in October for the third straight month from its record high in July, reaching the lowest level since March. Recent erosion in sentiment likely reflects, in part, enhanced uncertainty facing consumers today,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate. 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 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 November 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.