Sales: According to ValleyMLS.com, Huntsville-area home sales totaled 746 units during August, up 10.5 percent from 675 sales in the same month a year earlier. August sales were down .9 percent compared to 753 sales in July. Results were 31.1 percent above the five-year August average of 569 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 August totaled 1,698 units, a decrease of 24.6 percent from August 2017’s 2,252 units, and a decrease of 1.8 percent from July 2018’s 1,729 units. Huntsville also experienced a year-over-year decline in months of supply. August months of supply totaled 2.3 months, a decrease of 31.8 percent from August 2017’s 3.3 months of supply. However, August’s months of supply remained constant from July’s 2.3 months of supply.
Pricing: The Huntsville median sales price in August was $193,500, a decrease of .8 percent from one year ago and a decrease of 11.2 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the august median sales price on average decreases from July by 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 August spent an average of 47 days on the market (DOM), a decrease of 30.9 percent from 68 days in August 2017, but an increase of 9.3 percent from 43 days in July.
Forecast: August sales were 43 units, or 6.1 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 703 sales for the month, while actual sales were 746 units. ACRE forecast a total of 4,890 residential sales in the Huntsville area year-to-date, while there were 5,242 actual sales through August.
ACRE’s statewide perspective: Residential sales in Alabama continued to grow during the late summer of 2018. Total residential sales during July increased 7.9 percent year-over-year from 5,312 to 5,729 closed transactions. Year-to-date through July, statewide residential sales are up 7.1 percent from 33,929 one year ago to 36,354 currently. Home price appreciation in the state also continues its upward trajectory. The median sales price in July increased 5.9 percent from $160,279 to $169,727, while the year-to-date median sales price is up 5.3 percent from 2017. Mirroring national trends, statewide inventory decreased 12.1 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices during July. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during July spent an average of 86 days on the market, an improvement of 25 days from 2017.
NAR’s national perspective: During July, nationwide sales volume for existing homes increased 1.8 percent year-over-year from 513,000 to 522,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, “Continuous solid gains in home prices have now steadily reduced demand. Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million (seasonally adjusted annual rate). Too many would-be buyers are either being priced out, or are deciding to postpone their search until more homes in their price range come onto 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 and ValleyMLS.com to better serve its area consumers.