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.
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 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.
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.