January home sales in Huntsville area up 22% from last year

January home sales in Huntsville area up 22% from last year
The Huntsville median home sales price in January was $229,115, an increase of 6.6% from January 2019. (ACRE)

Sales: According to ValleyMLS.com, Huntsville-area home sales totaled 584 units during January, up 22.2% from 478 sales in the same month a year earlier. Following seasonal trends, January sales were down 14.5% compared to 683 sales in December. Results were 48.3% above the five-year January average of 394 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 January totaled 849 units, a decrease of 35.1% from January 2019’s 1,308 units and a decrease of 14.5% from December’s 993 units. Huntsville experienced a year-over-year decline in months of supply. January’s months of supply totaled 1.5 months, a decrease of 46.9% from January 2019’s 2.7 months of supply and equal to December’s 1.5 months.

Pricing: The Huntsville median sales price in January was $229,115, an increase of 6.6% from January 2019 and a decrease of 3.1% 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 January spent an average of 44 days on the market (DOM), a decrease of 10.1% from 49 days in January 2019 and an increase of 12.8% from 39 days in December.

Forecast: January sales were 64 units, or 12.3%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 520 sales for the month, while actual sales were 584 units.

ACRE’s statewide perspective: Residential sales growth was especially strong in January as total residential sales increased 23.2% year-over-year from 3,347 to 4,122 closed transactions. Markets across the state have plenty of momentum as 2019 was a record year for residential sales in Alabama. Home price appreciation continued to climb as the median sales price in January increased 11.8% year-over-year, marking 27 consecutive months of gains. While properties listed for sale nationwide decreased 10.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 17% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2019 and continued into January. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace. Homes selling in Alabama during January spent an average of 92 days on the market, a decrease of 15 days from January 2019.

NAR’s national perspective: Existing home sales increased significantly in January, rising 11.6% year-over-year from approximately 285,000 closed transactions one year ago to 318,000 currently. The nationwide median existing-home price increased 6.8% in January, marking 95 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales. Mortgage rates have helped with affordability, but it is supply conditions that have driven price growth.” Properties listed for sale nationwide declined 10.7% in January from approximately 1.59 million listings one year ago to 1.42 million currently.

 

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 customers.

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