Sales: According to ValleyMLS.com, Huntsville-area home sales totaled 863 units during July, up 14.6% from 753 sales in the same month a year earlier. July sales were up 9.5% compared to 788 sales in June. Results were 40.5% above the five-year July average of 614 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 July totaled 1,231 units, a decrease of 28.8% from July 2018’s 1,729 units and an increase of 0.8% from June’s 2019’s 1,221 units. Huntsville experienced a year-over-year decline in months of supply. July’s months of supply totaled 1.4 months, a decrease of 37.9% from July 2018’s 2.3 months of supply and a decrease of 7.9% from June 2019’s 1.5 months of supply.
Pricing: The Huntsville median sales price in June was $250,742, an increase of 3.9% from one year ago and a decrease of 2.9% 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 July spent an average of 36 days on the market (DOM), a decrease of 16.3% from 43 days in July 2018 and a decrease of 7.7% from 54 days in June.
Forecast: June sales were 113 units, or 13.1%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 750 sales for the month, while actual sales were 863 units. ACRE forecast a total of 4,385 residential sales in the Huntsville area year-to-date, while there were 4,668 sales through July.
ACRE’s statewide perspective: After a slight decline in June, statewide residential sales rebounded in July, increasing 10.2% from 5,722 closed transactions in July 2018 to 6,307 in July 2019. Year-to-date, sales are up 3.1% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in July increased 4.6% year-over-year from $169,178 to $176,926. The statewide median sales price is up 4.2% year-to-date. While nationwide inventory levels (active listings) decreased 1.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.9% 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 surprising to see homes selling at a slightly slower pace than one year ago. Homes selling in Alabama during July spent an average of 89 days on the market, an increase of three days from July 2018.
NAR’s national perspective: After a 7.4% drop in June, existing home sales strengthened in July. Nationwide residential sales increased 3.3% from approximately 523,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.3% in July, marking 89 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Falling mortgage rates are improving housing affordability and nudging buyers into the market.” However, he added that the supply of affordable housing is low across the nation. “The shortage of lower-priced homes has markedly pushed up home prices.”
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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 customers.