Huntsville/Madison County area residential sales totaled 314 units in January, an improvement in sales growth of 16.3 percent from last January and 7 units above our monthly forecast.
Supply: Huntsville housing inventory totaled 2,823 units, a decrease of 19 units from last January. New home inventory is up 4.4 percent year-over-year. The inventory-to-sales ratio in January was 9.0 months of housing supply (6.3 months for new construction – up from 4.3 in December). The market equilibrium (balance between supply and demand) is considered to be approximately 8 months during January. Huntsville and Baldwin County were Alabama’s most balanced markets in 2013. January inventory in Huntsville experienced a 1.7 percent (48 units) decrease when compared to the prior month. Historical data trends indicate January inventory on average (’09-’13) increases from the month of December by 3.5 percent.
Demand: Existing single family home sales accounted for 72 percent (up from 68% in Jan’13) of total sales, new homes sales accounted for 26 percent (down from 32% in Jan’13) while condos were 2 percent of sales (same as Jan’13).
Residential sales in January slipped by 18.2 percent from the prior month. Real estate sales volume is seasonal and historical Huntsville data reflects that January sales, on average (’09-’13), decrease from the month of December by 30.5 percent.
Pricing: The Huntsville median selling price in January was $154,332, a slip of 9.2 percent from January 2013. This figure also decreased by 18.2 percent from last month. Historical data (’09-’13) indicates that the January median selling price traditionally decrease from the month of December by 2.6 percent. Pricing can fluctuate from month-to-month as the sample size of data (closed transactions) is subject to seasonal buying patterns so a broader lens as to pricing trends is appropriate.
More industry perspectives: “January 2014 sales of new and existing homes reflected the decline in the affordability rate in most regions, the widespread inclement weather and the rise in interest rates. The slowdown in year over year unit sales also reflects the absence of real growth in employment and household incomes,” said Steve Murray, editor of the REAL Trends Housing Market Report. “As we stated last month we believe that unit sales are nearing a normal level given employment, the number of households, mortgage rates and household income. We expect that year over year increases will continue to be only slightly improved on a year over year basis in the months ahead.”
View the current monthly Huntsville Residential Report here.
The Huntsville 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.
About ACRE. ACRE was founded in 1996 by the Alabama Real Estate Commission, the Alabama Association of REALTORS and the Office of the Dean, UA Culverhouse College of Commerce. ACRE is not a state-funded entity, rather its operates in part because of the goodwill & generosity of our statewide ACRE Partners.