Tag Archives: Homes for Sale

December 31, 2012 · 7:17 pm

Alabama Housing Affordability reaches record level

Third quarter index of 240.5 represents new high. Infograph provided by ACRE. All rights reserved.

The affordability index associated with Alabama housing during the third quarter increased by 8.5 percent compared to the third quarter of 2011. Another record level for this period of the year  (see graph).

According to ACRE’s quarterly report, the Alabama Statewide Housing Affordability Index for the third quarter of 2012 was computed at 240.5 eclipsing the prior record for the third quarter (2011) of 221.6.

Sixteen of seventeen, or 94 percent, of the local markets areas tracked in Alabama showed an increase from the same period in 2011. Monroe County was the lone exception.

The standard definition used by the Alabama Center for Real Estate in describing the statewide housing affordability index is as follows:

“The statewide housing affordability index is calculated as the ratio of the state’s actual median family income to the income needed to purchase and finance the state’s median priced home. An index number of 100 means that a family earning the state’s median income has just enough buying power to qualify for a loan on the state’s median priced, single-family home, assuming standard underwriting criteria.”

The higher the index number is, the more affordable the housing.

The median home price for the quarter used for the calculation is computed from the median prices of homes sold in the reported areas during the third quarter in Alabama.

The Alabama Housing Affordability Index of 240.5 calculated for the third quarter of 2012 means that an Alabama family which earned the statewide median income of $55,400 had over twice (or 2.40 times) the income needed to qualify for a loan to purchase the statewide median priced home.

The median price of homes sold and the composite monthly interest rate are the two primary factors that fluctuate and affect the affordability of homes in Alabama, as well as the nation.

The combination of a downward trend in interest rates and lower selling prices of homes in Alabama have resulted in the highest affordability levels on record and a tremendous opportunity for those ready and able to make a home purchase

via Alabama Housing Affordability Index reaches record level for 3rd quarter | al.com.

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December 13, 2012 · 7:25 am

Huntsville/Madison County – November Residential Sales Surge 30%

Huntsville/Madison County residential sales up 30% in November compared to 2011. YTD Sales are up 14%. Infograph provided by ACRE. All rights reserved.

November residential sales totaling 406 units in greater Huntsville/Madison County area represent a significant 29.7% percent improvement from November 2011.

Year-to-date (YTD) residential sales through November are up 13.7% from the same period in 2011.

Click here to read or print the entire report.

Supply: Huntsville housing inventory totaled 2,859 units, a decrease of 3.0 percent from last November. The inventory-to-sales ratio in November stood at 7.0 months of housing supply, a significant decrease of 25.2% from 9.4 months in November 2011. This figure represents the best inventory balance between supply & demand in Alabama. November inventory in Huntsville experienced a 3.4 percent decrease when compared to the prior month. This direction beats historical data trends that indicates November inventory on average (’07-’11) traditionally decreases from the month of October by 1.6 percent.

Demand: Existing single family home sales accounted for 68 percent (compared to 67% in Nov’11) of total sales, new homes sales accounted for 29 percent (30% in Nov’11) while condos were 3% (same as Nov’11).

Residential sales are seasonal, typically peaking during the 2nd quarter(summer) and then gradually trending on a downward slope through the next three quarters. Historical Huntsville data reflects that November sales, on average (’07-’11), decline from the month of October by 2.0 percent. Huntsville residential sales in November decreased 3.1 percent from the prior month.

Pricing: The Huntsville median selling price in November was $169,900, a decrease of 2.3 percent from last November. This figure also represents a decrease of 2.9 percent when compared to the prior month. Historical data (’07-’11) indicates that the November median selling price traditionally increases from the month of October by 3.0 percent. This variance may be a result of larger sampling size of data (units closed – there were 93 more units sold in 2012 vs 2011).

via ACRE Report: Huntsville/Madison County Experience Strong November – Residential Sales Up 30% | al.com.

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December 11, 2012 · 8:51 am

8 Major Indicators Confirm A Strong Recovery In Home Prices

Professor Mark Perry of the Carpe Diem blog summarizes the latest numbers from the major home price indices:

There’s a pretty strong consensus among economists and analysts that U.S. home prices bottomed in 2011 and have been gradually rising in 2012 as the housing market entered a new period of recovery this year. The chart above summarizes eight key home price indicators, which are all showing strong, positive increases in home prices (or asking prices) through either September or October on a year-over-year basis.

via 8 US Home Price Indices – Business Insider.

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December 5, 2012 · 9:13 am

Alabama YTD Home Sales up 6.4%

Alabama statewide residential sales during October were 7.7 percent higher than the same period in 2011. Year-to-date (YTD) through October, sales are up 6.4 percent from 2011.

Supply: The statewide housing inventory in October was 32,902 units, a decrease of 6.6 percent from October 2011 and 17.2 percent below the month of October’s peak in 2007 (39,745 units).

There were 10.3 months of housing supply (6 months considered equilibrium) in October 2012 versus 11.9 months of supply in October 2011, a favorable decline of 13.3 percent.

October inventory in Alabama experienced a 1.8 percent decrease when compared to the prior month. This trend is consistent with historical data indicating that October inventory on average (’07-’11) traditionally decreases from the month of September by 1.0 percent.

Demand: In October, Alabama residential sales were outperformed by the US market which showed an increase of 10.9 percent from the prior year (October’11), according to the National Association of REALTORS (NAR). NAR also reported that the South region sales were up 11.0 percent from last October. Investors accounted for 20 percent of nationwide sales while 29 percent were all-cash sales and 31 percent were first-time home buyers (40% in typical market).

October statewide residential sales were essentially unchanged (up .6%) from the prior month. This movement is an improvement when compared to historical data that indicates that October sales, on average (’07-’11), decrease from the month of September by 7.5 percent. In comparison, US sales rose 2.1 percent from last month while the South region also improved by 2.1 percent from the prior month.

Pricing: The statewide median selling price in October was $127,137, an increase of 9.8 percent from last October. This figure also represents an increase of 1.2 percent when compared to the prior month. In contrast, historical data (’07-’11) reflects an October median selling price that traditionally decreases from the month of September by 2.5 percent. Nationally, NAR states that distressed homes – foreclosures and short sales sold at deep discounts – accounted for 24 percent of September sales (12 percent were foreclosures and 12 percent were short sales), Foreclosures typically sold for an average 20 percent below market price in October, while short sales were discounted 14 percent.

Local Results: 15 out of the 25 local reporting associations (60% – this is up from 28% in September) reflect sales gains from the prior year (October’11). Year-to-date, sales in metro markets (up 9% from last year) have outperformed both rural (up 4%) and midsize areas (up 1%). All 5 major metro areas representing 70% of Alabama sales have positive YTD year-over-year growth rates except Tuscaloosa (down 2%, primarily due to increased storm-related demand in 2011).

via Alabama Residential Report: YTD Sales up 6.4%; 76% of local markets show improvement from 2011 | al.com.

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December 1, 2012 · 11:07 am

Huntsville among the top 25 fastest growing metros

Construction on developments such as Providence Place Apartment Homes might be more common as Huntsville continues to grow. The city’s metro area is projected to add another 10,000 households over the next five years. (The Huntsville Times/Glenn Baeske)
Glenn Baeske, The Huntsville Times

HUNTSVILLE, Alabama — Huntsville is among the nations fastest growing metro areas, according to a new analysis by the market research firm Pitney Bowes Software. The study, released today in the firms inaugural Metro Magnets Index, says Huntsville is No. 23 on the list of the fifty fastest growing areas. The citys projected population growth rate of 5.8 percent over the next five years means its growing faster than some other Southeastern metros, including Nashville and Atlanta. The firm sells its projections and data to businesses for use in making strategic growth decisions.Huntsville will gain nearly 10,000 more households between this year and 2017, according to the report. The citys annual growth rate is 1.2 percent, slower than the 2.3 percent annual growth rate it had between 2000 and 2010. But its not alone. Around 78 percent of U.S. metropolitan areas are projected to have slower growth than they had in the last decade.

via Huntsville among the top 25 fastest growing metros | al.com.

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