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Huntsville/Madison County residential median sales price in June improves 10% from prior year

Click here to view or print the entire June report compliments of the ACRE Corporate Cabinet.

Huntsville/Madison County area residential sales in June slipped 1.7 percent from the same period a year earlier. Year-to-date sales are virtually the same as 2013 (-1.0%) through the month of June. Total sales of 507 units were 15 units or 2.7 percent shy of our monthly forecast.

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View full sizeHuntsville/Madison County residential sales slip 1.7% from last June. Inventory has decreased 2.2% from the month of June peak in 2010. Infograph provided by ACRE. All rights reserved.

Supply: Huntsville housing inventory totaled 3,259 units, an increase of 142 units from last June and 5.3 percent above the 5-year June average of 3,095 units. New home inventory is down 9.1 percent year-over-year while existing single family is up 6.9 percent. The inventory-to-sales ratio in June was 6.4 months of housing supply (3.9 months for new construction – down from 4.2 months in May 2013). The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during June. Huntsville remains one of Alabama’s most balanced markets in 2014. June inventory in Huntsville/Madison County experienced a 2.5 percent (79 units) increase when compared to the prior month. This movement contrast with seasonal & historical data trends that indicate June inventory on average (€™09-€™13) remained unchanged from the month of May.

Demand: New home sales improved 5.3 percent from last June after a weak May but a strong sales surge in April. New home sales spur economic growth and job creation so this is encouraging news. Existing single family home sales accounted for 73 percent (down from 74% in June’13) of total sales, new homes sales accounted for 14 percent (up from 12% in June’13) while condos were 3 percent of sales (down from 4% in June’13).

Residential sales in June improved 10.7 percent from the prior month. Real estate sales volume is seasonal and historical Huntsville data reflects that June sales, on average (€™09-€™13), increase from the month of May by 6.1 percent.

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View full sizeHuntsville/Madison County residential median sales prices rises 10% from last June. Infograph provided by ACRE. All rights reserved.

Pricing: The Huntsville median sales price in June was $184,900, an increase of 10.1 percent from June 2013 and 10.7 percent from the prior month. Historical data (09-13) indicates that the June median selling price traditionally increases from the month of May by 3.0 percent. It’s important to note that 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. ACRE recommends contacting a local real estate professional to discuss pricing at the neighborhood level.

Industry Perspective: According to Fannie Mae’s June National Housing Survey: Americans’ Attitudes Toward the Housing Market Reflect Steady but Slow Recovery, “Normal” Housing Levels Still a Ways Off. Click HERE for report.

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 Commissionthe 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.

Alabama real estate resources & news, please visit our website and our ACRE blog. You can also follow ACRE from our facebook page, just “like” http://www.facebook.com/acreua and/or follow on twitter at @uaacre.

Huntsville/Madison County residential median sales price in June improves 10% from prior year | AL.com.

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Huntsville newcomers share what brought them to the Rocket City

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He’s a computer systems analyst for one of the world’s largest defense contractors by day. By night, he works over a hot grill serving up fresh tacos for the masses.

Like many Huntsville transplants, Armando Guerrero migrated to the Rocket City from Austin five years ago for a job. Since then, he and wife Priscilla have launched Crave Heat, a Tex Mex food truck that has become a staple at street food gatherings and a sight for sore eyes among Huntsville’s homeless community.

It’s been hard for the couple with three young sons to live more than 800 miles from the only home they’ve ever known, but Armando Guerrero, a Texas native who never imagined he would one day live in Alabama, believes his family unit is stronger because of it.

“We’ve faced many challenges here without family, but it’s been a great place to strengthen our family as a family,” he said. “Our faith has increased a good bit, as we miss family and feel distant at times.”

Using 2010-11 Internal Revenue Service data, AL.com is taking a look at where residents are moving from into the state, and where Alabamians are going when they leave. A year after Guerrero landed a job in Huntsville, 16 people from the Austin area moved into Madison County and brought $523,000 in income with them.

Another high migration area was Fairfax, Va., which lost 209 people and more than $10 million in income to Madison County. During that same time frame, King County, Wash. lost 33 people and $1 million to the Huntsville area, San Diego County 93 people and $1.9 million and El Paso County, Colo. 90 people and $2.9 million.

Unlike other metro counties across the state, Madison County’s per capita income of newcomers is $1,790 higher than the people who are leaving. Mobile, Jefferson, Montgomery, Tuscaloosa and Shelby counties all have a negative per capita income relationship between comers and goers.

‘A commonality of culture’

Lucia Cape, vice president of economic development for the Chamber of Commerce of Huntsville/Madison County, wasn’t surprised by the IRS migration data. Cape said the Chamber launched an aggressive recruitment campaign through the Base Realignment and Closure period from late 2006 through 2011.

The Chamber spent a lot of time in the Washington, D.C. and Fairfax area recruiting newcomers during BRAC, a process that brought 4,600 government positions to Huntsville.

Col. John Hamilton, who migrated from Fairfax into Madison County in 2010, didn’t come to Huntsville for BRAC. Instead, he was offered the garrison commander post at Redstone Arsenal.

Hamilton, who admits Huntsville “was kind of an unknown place” before moving here, said the city has grown on him and his family.

“When you get into a town like this, if you’re someone like me who moves around a lot, this is a town you can just step right into and be comfortable in,” he said. “If you go around to cities like these that have a significant military presence, they all tend to have similar characteristics – a comfort level, a commonality of culture.”

Hamilton retired last year after a long military career to assume the role of Huntsville’s city administrator. Hamilton, who is raising two young children in Huntsville’s medical district, said the transition was easy for his family.

As Remington prepares to take over the former Chrysler building near Huntsville International Airport and Verizon brings in 300 new workers to its call center in Thornton Research Park, Hamilton said infrastructure and acceptance will be vital for continued growth in the community.

AL.com reported earlier this year that 45 percent of Madison County’s population is made up of residents who are not natives of the state, while the area is also on a short list of Alabama counties where more than 5 percent of the population was born outside the United States.

With the promise of 2,000 new Remington jobs in Madison County, Cape said that migration pattern is likely to continue in the years ahead.

“That kind of trend is strong,” she said. “It shows you can organically support workforce growth but you also have the characteristics to bring people in from outside, which continues to strengthen us a community.”

Southern perceptions

Curse, a gaming information company that moved its headquarters from San Francisco to Huntsville in 2013, is expanding this year with 20 new jobs at its downtown office. The business grew 60 percent in 2013, which was in part fueled by “the great talent” Curse has found in the Rocket City.

“It’s a pleasant mix of technical minds, and people that really understand our products and are all members of the new digital age,” said Vice President of Marketing Donovan Duncan.

Justin Sacks and David Cho, two young professionals from out west, packed their bags and left sunny southern California to take full-time jobs with Curse.

Sacks, who came directly from San Diego, was operating a small business in the competitive gaming industry when an opportunity to work for Curse came available last spring. Now a sales and business development manager for Curse, Sacks said he has been “pleasantly surprised” by Huntsville at every turn.

“I definitely had a perception on what the South and specifically Alabama would look like,” he said. “Huntsville has blown those away. … San Diego is probably the most amazing place in the world to live, so it would be hard to beat that, but it’s been pretty awesome here. I definitely have no plans to leave anytime soon.”

Cho, who is from Huntington Beach, said Curse offered to fly him out to Huntsville before offering him the job so he could take a look at the city. He declined.

It’s taken some time for the video editor to get acclimated to Alabama, but Cho said the environment and housing market for young people “have been much better than expected.”

“I definitely had some preconceived notions coming in to be perfectly honest, but once you actually come to Huntsville, physically speaking it’s not what you expected – in a good way,” he said. “It really is a thriving city, and it’s just great to be a part of the growth.”

Huntsville newcomers share what brought them to the Rocket City | AL.com.

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Huntsville among top 10 Most Promising U.S. Tech Hubs to watch in 2014 by Techie.com

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Downtown Huntsville. (AL.com file photo)

Huntsville was the only city in Alabama to make Techie.com‘s new Most Promising Tech Hubs of 2014 list.

Other U.S. cities featured on the list, which was released Monday, were Atlanta; Burlington, Vt.; Fort Collins, Colo.; Champaign/Urbana, Ill.; Detroit; Kansas City, Mo.; Orlando, Fla.; Minneapolis/St. Paul; and Sioux Falls, S.D.

“One of the most important factors in naming our most amazing tech hubs is the presence, or at least the emergence, of a tech and startup culture,” said Dan Blacharski, Techie.com editor-in-chief. “Without the culture, the meetups, and the fun places to go in the city, tech startups just won’t want to come.”

Techie.com editors also considered other factors, including the presence of incubators, accelerators and co-working spaces, city and community support and available infrastructure, such as high-speed Internet.

A Techie.com article highlighting the top 10 cities lauded Huntsville’s Cumming Research Park, aerospace and military technology companies, and the NASA Marshall Space Flight Center.

“But it’s not all government and academia; Huntsville is rapidly emerging as one of the best places in the South for small, emerging tech businesses,” Blacharski said.

The piece also features quotes from BizTech Chief Executive Officer Gary Tauss and Huntsville entrepreneur and Small Business Meetup Group creator Brandon Kruse.

Click here to read the full article.

“For a great place to launch a startup, entrepreneurs need look no further than Huntsville,” Blacharski said. “The entrepreneurial scene, and vibrant incubators like Biztech – along with good old fashioned southern hospitality – has made Huntsville one of the greatest laboratories for tech startups in the country.”

Among some of Huntsville/Madison County’s other recent honors: the third best U.S. city for Science, Technology, Engineering, Math (STEM) graduates by NerdWallet; a top high-tech U.S. hotspot by the Progressive Policy Instituteone of the top U.S. cities on the rise by NerdWallet; a high-ranking U.S. city for economic growth potential by Business Facilities Magazineone of the best cities for high-tech startups by Entrepreneur Magazine; and a great city for computer programmers by ValuePenguin.

Huntsville among top 10 Most Promising U.S. Tech Hubs to watch in 2014 by Techie.com | AL.com.

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Huntsville/Madison County residential sales up 6% in December; 2013 sales up 8%

Huntsville/Madison County residential sales totaled 384 units for the month of December. Residential sales improved 6.1 percent compared to December 2012. For the year, the market experienced sales growth of 8.3 percent over last year.

Click here to read or print the entire report compliments of American Family Dream.

Historical Sales.jpgView full sizeHuntsville/Madison County residential sales up 6% from last December. Inventory is 4% below December 2010 peak. Infograph provided by ACRE. All rights reserved.

Supply: Huntsville housing inventory totaled 2,871 units, an increase of 159 units from last November, led by an increase in new home inventory of 15.6 percent. The inventory-to-sales ratio in December was 7.5 months of housing supply (4.3 months for new construction – up from 6.2 in November), the same figure as last December. The market equilibrium (balance between supply and demand) is considered to be approximately 7-8 months during December. Huntsville and Baldwin County are Alabama’s most balanced markets in 2013. November inventory in Huntsville experienced a 5.2 percent (159 units) decrease when compared to the prior month. Historical data trends indicate December inventory on average (’08-’12) decreased from the month of November by 7.4 percent.

Demand: Existing single family home sales accounted for 65 percent (same as Dec’12) of total sales, new homes sales accounted for 32 percent (down from 33% in Nov’12) while condos were 3 percent of sales (up from 2% in Dec’12).

Residential sales in December increased by 12.0 percent from the prior month. Real estate sales volume is seasonal and historical Huntsville data reflects that December sales, on average (’08-’12), decrease from the month of November by 1.0 percent.

Pricing: The Huntsville median selling price in December was $183,500, a slip of .3 percent from December 2012. In contrast, this figure improved by 14.7 percent from last month. Historical data (’08-’12) indicates that the December median selling price traditionally increase from the month of November by 1.0 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.

Financing Alert – 2014 Qualified Mortgage (QM) rule takes effect on January 10th: “The 2014 QM rule has generated more news, commentary and debate than almost any other mortgage rule in history.” Qualified Mortgage has created a news page to help you keep up with developments in this area.”

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 Commissionthe 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.

Alabama real estate resources & news, please visit our website and our ACRE blog. You can also follow ACRE from our facebook page, just “like” http://www.facebook.com/acreua and/or follow on twitter at @uaacre.

via Huntsville/Madison County area residential sales up 6% in December; 2013 sales up 8% | AL.com.

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Alabama October Home Sales Up 9%; YTD Sales Up 11%

Alabama residential sales in October continued to gradually improve, up 8.9 percent compared to the same period a year earlier. Through October, sales are up 10.6 percent year-over-year and sixty percent of local markets report positive sales growth compared to October 2012.

Click here to view or print July’s full report compliments of the ACRE Corporate Cabinet.
 
Total Sales.jpgView full sizeAlabama home sales up 9% from October 2012. Infograph courtesy of ACRE. All rights reserved.
Supply: The statewide housing inventory in October was 33,352 units, an increase of 1.4 percent from October 2012 but 16.1 percent below the month of October peak in 2007 (39,745 units). There was 9.6 months of housing supply (7-8 months considered equilibrium during month of October) in October 2013 versus 10.3 months of supply in October 2012, a solid decline of 6.9 percent. It is also the first time the market has seen below 10 months in October since 2007 (9.8 months) which is progress. In contrast, October inventory decreased by 1.4 percent over the prior month. This is consistent with historical data that indicates October inventory on average (’08-’12) traditionally decreases from the month of September by 1.3 percent. In contrast to reports of lack of inventory at the national level, Alabama still has a plentiful supply in most local markets. Only 8 of 25 or 32 percent of local markets have single-digit months of housing supply so this is an area where more reduction would be welcome news. With that said, metro markets, representing 70 percent of statewide transactions, are edging closer to equilibrium with 8.5 months of supply.
 
Demand: As expected, October statewide residential sales slipped 2.3 percent from the prior month. This movement is consistent with seasonal trends & recent historical data that indicates October sales, on average (’08-’12), decrease from the month of September by 7.1 percent. Our YTD forecast for Alabama projected 35,749 closed transactions through October – actual closings were 3.1% above forecast or 36,855 units.
 
Pricing: The statewide median selling price in October was $130,643, an increase of 2.8 percent from last October. Pricing can fluctuate from month-to-month as the sample size of data (closed transactions) is subject to seasonal buying patterns. The median price also improved 5.4 percent from the prior month. Historical data (’08-’12) reflects that the October median selling price traditionally decrease from the month of September by 1.1 percent. 17 of 25 or 68 percent of local markets experienced positive movement in sales price growth from October 2012.
 
Local Results: 15 out of the 25 local reporting associations (60% – this is a slip from 72% in October) reflect sales gains from last October. Year-to-date through October, sales in metro markets (up 12% from last year) has outperformed both midsize markets (up 9%) and small markets (up 7%). For the fourth consecutive month, all 5 major metro areas representing 70% of Alabama sales, have positive sales growth for the current month and through the first tent months of the year. Eighty-eight percent (22 of 25) of the local housing markets across Alabama have experienced year-to-date sales growth when compared to 2012 and that is welcome news for Alabama consumers as well our state’s real estate industry. Last month, this figure stood at ninety-two percent.
 
They said it – Mortgage Bankers Association: “Our forecast for the increase in the purchase market is based on our expectations for ongoing improvements in the broader economy and the jobs market. We are projecting overall economic growth to be 2.4 percent in 2014 and 2.7 percent in 2015, supported mainly by increases in consumer spending and residential fixed investment. GDP growth will remain relatively weak through the end of 2013 and early 2014, at around 2 percent, due to a variety of uncertainties, particularly over US spending and tax policies linked to the debt limit debate. Our expectation is that the economy will grow somewhat faster in the second half of 2014 as some of these issues are resolved.”
This monthly report is provided compliments of the ACRE Corporate Cabinet.

The Alabama Residential Monthly Report is work product developed in conjunction with the Alabama Association of REALTORS and its local associations.

Alabama Residential Report: October sales up 9%; YTD sales up 11% | AL.com.

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