Huntsville October home sales rise 31 percent from last year

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Sales

According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 600 units during October, a growth in sales of 31 percent from the same period last year. Year-to-date sales increased 11.9 percent from 2016. Two more resources to review: Quarterly Report and Annual Report.

For all of Huntsville’s area housing data, click here.

Forecast

Closed transactions in September were 112 units or 22 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through September projected 5,071 closed transactions, while the actual sales were 5,913 units, a favorable difference of 16 percent.

Supply

The Rocket City’s housing inventory totaled 2,116 units, a decrease of 19.2 percent from last October. New home inventory is down 502 units year-over-year, while existing single-family inventory is down 529 units.

The inventory-to-sales ratio in September was 3.7 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months. The market in September experienced a 2.1 percent decrease in inventory when compared to August. Historical data indicate a typical 0.3 percent increase from August to September.

Demand

Residential sales in October increased by 1.4 percent from September. New home sales made up 26 percent of sales, a decrease from 21 percent in October 2016. Existing single-family home sales accounted for 71 percent of total sales, up from 76 percent, while condos were 3 percent of sales, the same as the prior year.

Pricing

The Huntsville median sales price in September was $194,556, an increase of 11.2 percent from October 2016 and 3 percent from the prior month. Pricing can fluctuate as the sample size of data is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional to discuss pricing at the neighborhood level.

Industry perspective

“The first print of third-quarter economic growth showed surprising resiliency. The expected economic hit from the recent natural disasters either failed to materialize or was drowned out by business optimism,” said Fannie Mae Chief Economist Doug Duncan. “Recent data showed a stronger pickup in domestic demand than anticipated, leading us to increase our growth forecast for the final quarter of this year and coming quarters. We also revised higher our 2018 growth forecast to 2 percent. Tax cuts, if enacted, present upside risk to our growth forecast for next year but could also lead to more aggressive Fed action. Housing still remains a drag on the economy, as shortages of labor and available lots, coupled with rising building material prices, further complicate existing inventory, affordability and sales challenges.”

The Huntsville/Madison County Residential Monthly Report is developed in conjunction with the Huntsville Area Association of Realtors to better serve North Alabama consumers.

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