Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 390 units during November, an increase in sales growth of 18.5 percent or 61 units from the same period last year. Year-to-date sales through November were 16.5 percent above 2014. Two more resources to review: Quarterly Report and Annual Report

Huntsville area year-to-date home sales are up 14.2 percent over the same period last year.

Forecast: Closed transactions in November were 14 units or 3.7 percent above our monthly forecast. ACRE’s year-to-date sales forecast through November projected 4,519 closed transactions while the actual sales were 5,216 units, a rise of 15.4 percent.

Supply: Huntsville housing inventory totaled 2,849 units, a decrease of 19 percent from last November. New home inventory is up 27 units year-over-year while existing single-family inventory is down 273 units.

The inventory-to-sales ratio in November was 7.3 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during November (NSA). Huntsville was again one of Alabama’s most balanced markets in November. The market in November experienced a 5.3 percent decrease in inventory when compared to the prior month. Historical data indicates a typical 0.1 percent increase from October to November.

Demand: Residential sales in November decreased by 10 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that November sales, on average (2010-14), decrease from October by 7 percent. New home sales made up 22 percent of sales compared to 18 percent from the previous November. Existing single family home sales accounted for 75 percent (down from 78 percent in November 2014) of total sales, while condos were 3 percent of sales (down from four units during November 2014).

Pricing: The Huntsville median sales price in November was $175,000, a decrease of 1 percent from November 2014 and unchanged from the prior month. This month-over-month direction is pretty consistent with historical data (2010-14) indicating that the November median sales price on average increases from October by 0.1 percent. It’s important to note that pricing can fluctuate as the sample size of data (closed transactions) is subject to seasonal buying patterns so a broader lens as to pricing trends is appropriate. ACRE recommends contacting a local real estate professional to discuss pricing at the neighborhood level.

Industry Perspective: “Despite mixed housing and mortgage market data, our forecast for housing activity is little changed over the past several months,” said Fannie Mae Chief Economist  Dave Duncan. “The supply of existing homes remains lean amid slowing new single-family construction, putting significant upward pressure on home prices. While this helps boost home equity, it hurts affordability, especially for potential first-time homebuyers. Meanwhile, we expect mortgage rates to rise only gradually through next year, and an improving income trend should help support affordability. We foresee total home sales improving further in 2016, albeit at less than half of the 8.0 percent increase expected this year.” For full report click here.

The average sales price in Huntsville during November rose 3.5 percent over last year to $202,612.

On average, Huntsville homes spent 78 days on the market, a 23.5 percent decrease from last year.

Total inventory was down 19 percent over last year in Huntsville during November.

The Huntsville median sales price dipped slightly but held steady during November at $175,000.

Months of supply last November was 10.7, but it dropped to 7.3, favorably, during November 2015.

Year-to-date sales are up 16.5 percent over last year during November in Huntsville.

Sales were back near the 2012 numbers at 390 during November in Huntsville.

Bryan Davis is the research/media Coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu. The Huntsville/Madison County Residential Monthly Report is work product developed in conjunction with the Huntsville Area Association of Realtors to better serve North Alabama consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current available data. Real estate is local and statistics will fluctuate between areas within a city including subdivisions. ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.