April residential sales in greater Huntsville/Madison County area experienced an 19 percent increased with compared to April’s five-year sales average.
April represents the fifth consecutive month that Huntsville home sales have improved when compared to the same month from the prior year.
Supply: Huntsville housing inventory totaled 2,941 units, a decrease of 6.9 percent from this time last year. April inventory in Huntsville experienced a 5.2 percent increase when compared to the prior month. This direction is consistent with historical data that indicates April inventory on average (’07-’11) traditionally increases from the month of March by 1.5 percent.
Demand: Existing single family home sales accounted for 74 percent (up from 66% in April’11) of total sales, new homes sales accounted for 24 percent (down from 31% in March’11) while condos were 2% (down from 3%).
Residential sales are seasonal, typically peaking during the late spring/early summer. In a normal market, another trend occurs each year as sales routinely outperform results from the prior month as the market transitions toward its peak transaction period – the 2nd quarter. Of course, the real estate market has been anything but normal since 2008. In contrast, historical data reflects that Huntsville sales, on average (’07-’11), has decreased from the month of March by 6.8 percent. In a return to more traditional seasonal movement, Huntsville residential sales were 31.8 percent up from the prior month.
Pricing: The Huntsville median selling price in April was $158,000, a decrease of 9.7 percent from last April. However, this figure represents an increase of 1.3 percent when compared to the prior month. Historical data (’07-’11) indicates that the April median selling price traditionally increases from the month of March by .5 percent.
As the market transitions into the second quarter of 2012, statistical volatility is anticipated. With that said, most of the local & statewide housing statistics reflect a real estate market that is gradually improving and that is good news for Alabama consumers as well our state’s real estate community.