Sales: According to ValleyMLS.com, December home sales in the Huntsville area increased 26.9% year-over-year from 683 to 867 closed transactions. Sales increased 18.9% from November and were up 11.5% overall in 2020. Two more resources to review: Quarterly Report and Annual Report.

For all Huntsville-area housing data, click here.

Inventory: Homes listed for sale decreased 23.1% from 993 to 764 listings. Months of supply decreased from 1.5 months to 0.9, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in December was $263,044, an increase of 11.2% from one year ago and an increase of 13.1% from November. 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 December averaged 17 days on the market (DOM), selling 22 days faster than in December 2019.

Forecast: December sales were 179 units, or 26%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 688 sales for the month, while actual sales were 867 units. ACRE forecast a total of 8,910 residential sales in 2020, while there were 9,090 actual sales through December, a difference of 2%.

New construction: The 290 new homes sold represent 33.4% of all residential sales in the area in December. Total sales increased 25% year-over-year. The median sales price in December was $313,412, an increase of 9.1% from November and an increase of 8% from one year ago.

NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased 0.7% from November (seasonally adjusted annual rate), reaching the highest annual level since 2006. Sales increased significantly from one year ago, rising 22.2%. Sales prices continued to grow at higher rates than before the pandemic, rising almost 13% year-over-year.

Lawrence Yun, chief economist for NAR, said, “Home sales rose in December, and for 2020 as a whole we saw sales perform at their highest levels since 2006, despite the pandemic. What’s even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market. Although mortgage rates are projected to increase, they will continue to hover near record lows at around 3%. Moreover, expect economic conditions to improve with additional stimulus forthcoming and vaccine distribution already underway.”

ACRE commentary: Home sales in Alabama increased for the seventh consecutive month in December, rising 24.2% year-over-year. The strong rebound in sales activity during the summer has extended into early winter, with all metro areas in the state recording year-over-year gains in home sales during 2020. Buyers are incentivized by low mortgage rates, increasing their buying power during a time of rising sales prices, which increased 15% Y/Y in December. 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 35.3% in December.

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 Dec. 1-31, 2020. 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.