Huntsville median home sales prices up 16 percent from a year ago

Huntsville median home sales prices up 16 percent from a year ago
The Huntsville median home sales price in June was $220,500. (iStock)

Sales: According to the Huntsville Area Association of Realtors, Huntsville-area sales totaled 794 units during June, up 6.7 percent from 744 sales in the same month a year earlier. Similarly, June sales were up 6.3 percent compared to 747 sales in May. Results were 28.7 percent above the five-year June average of 617 sales. Two more resources to review: Quarterly Report and Annual Report.

For all Huntsville-area housing data, click here.

Inventory: Homes listed for sale in the Huntsville area during June totaled 1,744 units, a decrease of 24.9 percent from June 2017’s 2,321 units, and an increase of 1.5 percent from May 2018’s 1,718 units. Huntsville also experienced a year-over-year decline in months of supply. June months of supply totaled 2.2 months, a decrease of 29.6 percent from June 2017’s 3.1 months of supply. June’s months of supply also decreased from May’s 2.3 months of supply.

Pricing: The Huntsville median sales price in June was $220,500, an increase of 16.1 percent from one year ago and an increase of 9.2 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the June median sales price on average increases from May by 3.2 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE highly recommends consulting with a local real estate professional to discuss pricing trends, as they will vary from neighborhood to neighborhood. The homes selling in June spent an average of 59 days on the market (DOM), a decrease of 19.2 percent from 73 days in June 2017 and a decrease of 1.7 percent from 60 days in May.

Forecast: June sales were 53 units, or 7.2 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 741 sales for the month, while actual sales were 794 units. ACRE forecast a total of 3,469 residential sales in the Huntsville area year-to-date, while there were 3,743 actual sales through June.

ACRE’s statewide perspective: Coming into summer, the spring home-buying season had been significantly affected by very low inventory levels. May residential listings decreased more than 7 percent in the state and decreased 6.1 percent nationwide from one year ago. Residential sales in Alabama, however, increased 8 percent from one year ago, which is impressive considering the 7.3 percent drop in inventory. Home price appreciation heated up with the temperatures as the statewide median sales price increased 10.7 percent from one year ago, while also increasing 7 percent during the first quarter of the year. Home sales prices are expected to continue their upward climb throughout the summer as inventory levels are likely to repeat the declines that were seen during the spring.

NAR’s national perspective: Lawrence Yun, National Association of Realtors chief economist, says a solid economy and job market should be generating a much stronger sales pace than what has been seen so far this year. “Closings were down in a majority of the country last month and declined on an annual basis in each major region,” he said. “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”

 

 

 

 

 

 

 

 

 

 

 

Click here to view the entire monthly report.

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

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