Huntsville-area home sales up 19% year-over-year in October

(iStock)
Sales: According to ValleyMLS.com, October home sales in the Huntsville area increased 18.7% year-over-year from 707 to 839 closed transactions. Sales decreased 4% from September and are now up 9.2% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all Huntsville-area housing data, click here.
Inventory: Homes listed for sale decreased 28.7% from 1,167 to 832 listings. Months of supply decreased from 1.7 months to 1 month, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The median sales price in October was $252,440, which is no change from one year ago and an increase of 0.4% from September. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Homes sold in October averaged 16 days on the market (DOM), selling 15 days faster than in October 2019.
Forecast: October sales were 106 units, or 14.5%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 733 sales for the month, while actual sales were 839 units. ACRE forecast a total of 7,549 residential sales year-to-date, while there were 7,494 actual sales through October, a difference of 0.7%.
New construction: The 227 new homes sold represent 27.1% of all residential sales in the area in October. Total sales increased 15.8% year-over-year. The median sales price in October was $278,405, an increase of 6.9% from September and a decrease of 1.9% from one year ago.
NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased 4.3% from September (seasonally adjusted annual rate), rising for the fifth consecutive month, and increased 26.6% from one year ago. Sales prices continued to grow at higher rates than before the pandemic, rising almost 16% year-over-year.
Lawrence Yun, chief economist for NAR, said, “Considering that we remain in a period of stubbornly high unemployment relative to pre-pandemic levels, the housing sector has performed remarkably well this year. The surge in sales in recent months has now offset the spring market losses. With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market’s growth to continue into 2021.”
ACRE commentary: Home sales in Alabama increased for the fifth consecutive month in October, rising 32.2% year-over-year. Sales usually begin to slow in the fall, but low mortgage rates and demand for more housing space have resulted in significantly elevated sales activity. For additional context, year-over-year sales gains in October averaged 6.7% during the last five years, and it is unlikely that the large gains seen in recent months will continue long-term. Sales prices continue to grow at a faster rate than before the pandemic, which could motivate more potential sellers to list their homes going forward. Tight inventory has played a large role in driving sales prices upward, with total listings down 32.3% in October.
Click here to view the entire monthly report.
The Huntsville Area Residential Monthly Report is developed in connection with the Huntsville Area Association of Realtors.
Editor’s note: All information in this article reflects data provided to the Alabama Center for Real Estate for Oct. 1-31. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.