Huntsville/Madison County residential sales are 33.8% higher than last July. Inventory is 8.5% below July 2010 peak. Infograph provided by ACRE. All rights reserved.
Huntsville/Madison County residential sales totaled 554 units for the month of July. There were 38 more housing units sold compared to the prior month. Residential sales improved 33.8 percent compared to July 2012. Year-to-date sales through July are 11.0 percent ahead of 2012.
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Supply: Huntsville housing inventory totaled 3,124 units, an increase of 4.6 percent from last July led by an increase in new home inventory of 23.6 percent. The inventory-to-sales ratio in July stood at 5.6 months of housing supply (3.6 months for new construction), reflecting a decrease of 21.8% from 7.2 months in July 2012. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months. July inventory in Huntsville experienced a .2 percent (7 units) increase when compared to the prior month which is consistent with an expanding market with increased buyer demand. Historical data trends during downturn indicate July inventory on average (’08-’12) increased from the month of June by 3.6 percent. Until the market establishes multiple-month trend lines associated with the impact of sequestration, as it relates to housing demand, keeping an eye on levels of future supply will remain important for the market.
Demand: Existing single family home sales accounted for 73 percent (up from 71% in July’12) of total sales, new homes sales accounted for 24 percent (down from 26% in July’12) while condos were 3 percent of sales (same as July’12).
Residential sales in July increased by 7.4 percent from the prior month. June sales were considered lackluster by most due to the abruptness of recent uptick of interest rates in May/June. Real estate sales volume is seasonal and historical Huntsville data reflects that July sales, on average (’08-’12), decrease from the month of June by 5.4 percent.
Pricing: The Huntsville median selling price in July was $180,000, an increase of 1.4 percent from July 2012. This figure is up 7.1 percent from last month. Historical data (’08-’12) indicates that the July median selling price traditionally increase from the month of June by 3.0 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. Unlike prior years, a wild card this year is how the market responds to sequestration.
Regarding Interest Rates. “Consumers have taken the interest-rate rise in stride,” says Doug Duncan, Fannie Mae’s chief economist. “Expectations for continued improvement in housing persist, and sentiment toward the current buying and selling environment is back on track from its dip last month. These results are consistent with our own analysis of previous housing cycles, which finds that interest rates and home prices are not strongly correlated.”
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.
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via Huntsville/Madison County area residential sales up 33% in July; YTD sales up 11% | al.com.