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 475 units during December, an increase in sales growth of 18.5 percent or 74 units from the same period last year. Year-to-date sales through December were 16.7 percent above 2014 in the Rocket City. Two more resources to review: Quarterly Report and Annual Report.

For all of Huntsville’s area housing data, click here. 

Home sales in Huntsville increased to 475 units during the month of December.

Forecast: Closed transactions in December were 104 units or 28 percent above our monthly forecast. ACRE’s year-to-date sales forecast through December projected 4,890 closed transactions while the actual sales were 5,691 units, a rise of 16.3 percent.

Supply: Huntsville housing inventory totaled 2,680 units, a decrease of 19 percent from last December. New home inventory is down 364 units year-over-year while existing single-family inventory is down 292 units.

The inventory-to-sales ratio in December was 5.6 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during December (NSA). Huntsville was again one of Alabama’s most balanced markets in December. The market in December experienced a 6 percent decrease in inventory when compared to the prior month. Historical data indicates a typical 7.1 percent increase from November to December.

Demand: Residential sales in December increased by 22 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that December sales, on average (2010-14), increase from November by 9.2 percent. New home sales made up 25 percent of sales compared to 26 percent from the previous December. Existing single family home sales accounted for 72 percent (unchanged from December 2014) of total sales, while condos were 3 percent of sales (down from 2 percent during December 2014).

Pricing: The Huntsville median sales price in December was $172,000, an increase of 1 percent from December 2014 and down 1.7 percent from the prior month. This month-over-month direction contrasts with historical data (2010-14) indicating that the December median sales price on average increases from November by 4 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: “Consumers ended the year on an improved note with regard to their income, job security, and overall economic outlook. This more positive consumer sentiment brought the HPSI up a few points, moving the index up for all of 2015,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Brightening economic prospects, if sustained, should stimulate demand for homeownership. However, continuing upward pressure on rental prices and constrained housing supply, particularly for starter homes, may mean prospective first-time homebuyers could face affordability constraints.” For full report click here.

The average sales price for a home sold during December in Huntsville was $200,675.

On average, homes sold in Huntsville during December spent 92 days on the market.

Total inventory in Huntsville during December decreased 19 percent over 2014.

The Huntsville home median sales price during December rose to $172,000, compared to $169,900 during 2014.

Huntsville continues to be one of Alabama’s most balanced markets as we dive into the first quarter of 2016.

Year-to-date sales are up 16.7 percent over December 2014.

Home sales narrowly missed the all-time peak of 506 during December (2006), finishing just 6 percent below that mark.

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.