Sales: According to ValleyMLS.com, Huntsville-area home sales totaled 788 units during June, down 0.8% from 794 sales in the same month a year earlier. June sales were up 3.4% compared to 762 sales in May. Results were 17.2% above the five-year June average of 672 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 1,221 units, a decrease of 30% from June 2018’s 1,744 units and a decrease of 3.8% from May 2019’s 1,269 units. Huntsville experienced a year-over-year decline in months of supply. June months of supply totaled 1.5 months, a decrease of 29.5% from June 2018’s 2.2 months of supply and a decrease of 7% from May 2019’s 1.7 months of supply.
Pricing: The Huntsville median sales price in June was $227,375, an increase of 3.1% from one year ago and an increase of 0.4% from the prior month. 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 39 days on the market (DOM), a decrease of 33.9% from 59 days in June 2018 and a decrease of 27.8% from 54 days in May.
Forecast: June sales were 12 units, or 1.5%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 776 sales for the month, while actual sales were 788 units. ACRE forecast a total of 3,635 residential sales in the Huntsville area year-to-date, while there were 3,805 sales through June.
ACRE’s statewide perspective: Statewide residential sales decreased slightly in June, ending a five-month streak of year-over-year sales gains. This was the first such decline since December 2018 and only the fourth in the last two years. Statewide residential sales decreased 3.4% from 6,277 closed transactions in June 2018 to 6,063 in June 2019. Year-to-date, however, sales are up 1.8% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in June increased 7.3% year-over-year from $164,987 to $177,018. The statewide median sales price is up 4.1% year-to-date. While nationwide inventory levels (active listings) are stabilizing (equal to June 2018), Alabama’s residential listings decreased 9.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer buying season of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during June spent an average of 86 days on the market, an improvement of 14 days from June 2018.
NAR’s national perspective: After a small gain in May, existing home sales weakened in June. Nationwide residential sales decreased 7.5% from approximately 570,000 closed transactions one year ago to 527,000 currently. The nationwide median existing-home price increased 4.4% in June, marking 88 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of REALTORS, said, “Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country.” Yun said there is a housing shortage across the country and more inventory is needed, especially in the entry-level price range. “Imbalance persists for mid- to lower-priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.
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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.