Sales: According to ValleyMLS.com, Huntsville-area home sales totaled 654 units during September, up 10.5 percent from 592 sales in the same month a year earlier. September sales were down 12.3 percent compared to 746 sales in August. Results were 26.7 percent above the five-year September average of 592 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 September totaled 1,646 units, a decrease of 25.3 percent from September 2017’s 2,204 units, and a decrease of 3.1 percent from August 2018’s 1,698 units. Huntsville also experienced a year-over-year decline in months of supply. September months of supply totaled 2.5 months, a decrease of 32.4 percent from September 2017’s 3.7 months of supply. However, September’s months of supply increased from August’s 2.3 months of supply.

Pricing: The Huntsville median sales price in September was $204,500, an increase of 8.3 percent from one year ago and an increase of 5.7 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the September median sales price on average decreases from August by 1.3 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 September spent an average of 48 days on the market (DOM), a decrease of 12.7 percent from 55 days in September 2017, but an increase of 2.1 percent from 47 days in August.

Forecast: September sales were 25 units, or 4 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 629 sales for the month, while actual sales were 654 units. ACRE forecast a total of 5,519 residential sales in the Huntsville area year-to-date, while there were 5,896 actual sales through September.

ACRE’s statewide perspective:  While nationwide sales declined during September, residential sales in Alabama continued to grow during the early fall of 2018. Total residential sales in Alabama increased 8.5 percent year-over-year from 4,678 to 5,074 closed transactions. Year-to-date through September, statewide residential sales are up 6.8 percent from 44,272 one year ago to 47,283 currently. Home price appreciation in the state grew, but at a slower pace than in previous months. The median sales price in September increased 0.6 percent from $161,480 to $162,482, while the year-to-date median sales price is up 4.4 percent from 2017. Although nationwide inventory levels are starting to stabilize, Alabama’s residential inventory decreased 8.9 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during September spent an average of 90 days on the market, an improvement of 18 days from 2017.

NAR’s national perspective:  During September, nationwide sales volume for existing homes decreased 9.1 percent year-over-year from 462,000 to 420,000 closed transactions. According to Lawrence Yun, chief economist for the National Association of Realtors, rising interest rates played a significant role in September sales declines in markets across the nation. “This is the lowest existing home sales level since November 2015,” he said. “A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”

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.