Huntsville/Madison County residential sales totaled 376 units for the month of February. There were 79 more housing units sold compared to the same month a year earlier. Restated, residential sales improved by 26.6 percent in February. Year-to-date, sales are up a solid 15.6 percent.
Supply: Huntsville housing inventory totaled 2,812 units, an increase of 2.5 percent from last February led by an increase in new home inventory of 17.7 percent. The inventory-to-sales ratio in February stood at 7.5 months of housing supply, this reflects an decrease of 19.0% from 9.2 months in February 2012. This figure still represents the best inventory balance between supply & demand in Alabama. February inventory in Huntsville experienced a 1.1 percent decrease when compared to the prior month. This direction is an improvement over historical data trends that indicates February inventory on average (’08-’12) increases from the month of January by 2.0 percent.
Demand: Existing single family home sales accounted for 64 percent (compared to 73% in Feb’12) of total sales, new homes sales accounted for 34 percent (up from 25% in Feb’12) while condos were 2 percent of sales (same as Feb’12).
Residential sales in February increased by 39.3 percent from the prior month. Historical Huntsville data reflects that February sales, on average (’08-’12), increase from the month of January by 6.2 percent. Huntsville residential sales in handily beat recent sales norms for February which is a positive indicator for the local market.
Pricing: The Huntsville median selling price in February was $167,210, an increase of 4.3 percent from last February. In contrast, this figure represents an decrease of 1.6 percent when compared to the prior month. Historical data (’08-’12) indicates that the February median selling price traditionally decreases from the month of January by 2.6 percent so this month’s slip is narrower than recent trends and this is favorable news for the market.
What’s the latest housing and economic outlook for 2013? Frank Nothalt, Freddie Mac vice president & chief economist shares, “Across the nation, most local housing markets have room for sustainable growth, particularly in home construction and sales. As the broader economy heals, expect to see more good news with home prices continuing their recent upward trend, and home sales and housing starts continuing to post strong growth rates.”
View the current monthly Huntsville Residential Report here.