Published On: 05.28.18 | 

By: ACRE Research

Huntsville April home sales increase 16 percent from 2017

The Huntsville-area median sales price in February was $195,575, an increase of 11.8 percent from one year ago. (ACRE)

Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the Hunstville Area Association of Realtors, Huntsville-area residential sales totaled 678 units during April, an increase of 16.3 percent from one year ago, when sales totaled 583 units. Existing single-family homes accounted for 76 percent of all residential sales, while newly constructed homes were 21 percent and condo sales were 3 percent. Two more resources to review: Quarterly Report and Annual Report.

For all Huntsville-area housing data, click here.

Forecast: April sales for the Huntsville area were 89 units, or 15.1 percent, above the Alabama Center for Real Estate’s monthly forecast. ACRE projected 589 sales for the area during April, while the actual sales were 678 units. Year-to-date there have been 2,202 closed residential transactions in the area, 7.26 percent above ACRE’s forecast of 2,053 year-to-date sales.

Supply: Housing inventory in the Huntsville area totaled 1,704 listings during April, a decrease of 25.3 percent from the same month in 2017. April inventory was 3.6 percent below the prior month. This trend is inconsistent with historical data indicating that April inventory on average (2013-17) increases from March by 3 percent. The inventory-to-sales ratio in April was 2.5 months of housing supply. Restated, at the April sales pace, it would take 2.5 months to absorb the current inventory for sale. This is a decrease of 36 percent from 3.9 months of supply in April 2017. The market equilibrium (balance between supply and demand) is approximately 6 months.

Demand: April residential sales in the Huntsville area increased 5.3 percent from the prior month. This is consistent with historical data indicating that April residential sales on average (2013-17) increase from March by 3.4 percent. Homes selling in April averaged 61 days on the market, representing a decrease of 33.7 percent from the same month in 2017. Homes in the Huntsville area are selling much more quickly than in previous years, as the five-year days-on-market average for April is 105 days.

Pricing: The Huntsville-area median sales price in February was $195,575, a decrease of .7 percent from the previous month and an increase of 11.8 percent from one year ago. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. ACRE recommends consulting a local real estate professional.

Industry perspective: Statewide, residential real estate sales continued to show growth during the first quarter of 2018 as they grew 2.4 percent from the first quarter of 2017. Low inventory levels, however, played a large role in driving prices upward. During the first quarter of the year, the statewide median sales price increased 7.1 percent from one year ago. Although good news for sellers, this price growth, combined with rising interest rates, could lead to affordability issues for buyers in today’s markets.

Click here to generate more graphs from the Huntsville Area April Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Huntsville-Madison County Residential Report is developed in conjunction with the Huntsville Area Association of REALTORS to better serve North Alabama consumers.