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 434 units during February, a rise in sales of 5 percent or 20 units from the same month the previous year, when there were 414 total sales. Two more resources to review: Quarterly Report and Annual Report.

For all of Huntsville’s area housing data, click here. 

Huntsville February home sales rose 5 percent compared to February 2016.

Forecast: Closed transactions in February were 38 units or 10 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s 2017 sales forecast through February projected 746 closed transactions, while the actual sales were 834 units.

Supply: The Rocket City’s housing inventory totaled 2,265 units, a decrease of 13 percent from the previous February. New home inventory was down 47 units year-over-year, while existing single-family inventory was down 288 units.

The inventory-to-sales ratio in February was 5.2 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during February. Huntsville overall continues to move in a favorable direction when it comes to its inventory-to-sales ratio. The market in February experienced a 0.4 percent decrease in inventory when compared to January. Historical data indicate inventory typically holds steady from January to February.

Demand: Residential sales in February increased by 8.5 percent from January. This direction is consistent with seasonal patterns and historical data indicating that February sales, on average (2012-2016), increase from January by 17.5 percent. New home sales made up 27 percent of sales, up from 21 percent the previous February. Existing single-family home sales accounted for 69 percent of total sales, down from 75 percent, while condos were 4 percent of sales.

Pricing: The Huntsville median sales price in February was $183,000, up 10.3 percent from February 2016 and up 7.7 percent from the prior month. This  direction contrasts with historical data (2012-2016) indicating that the February median sales price on average decreases from January by 0.4 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: “We expect the housing expansion to continue, albeit at a more moderate pace than last year given continued pressure on affordability,” said Fannie Mae Chief Economist Doug Duncan. “Depressed inventory, particularly in the more affordable segments, will likely constrain sales and push home price gains that outpace income growth. A faster pace of monetary tightening, unless accompanied by a stronger increase in household income, also poses downside risk to housing.”

Click here to generate more graphs from the Huntsville February 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.