While Madison County continues to outpace the national residential real estate market, the inventory of available houses remains a concern, according to a recently released study.
The Huntsville Area Association of Realtors, in partnership with the University of Alabama-Huntsville College of Business, released its real estate economics report, which compares the local housing market in Madison County to its national counterpart.
“Huntsville and Madison County appear on so many Top 10 lists for several good reasons: great job opportunities, low cost of living, a diverse economy and entertainment culture, and responsible management by our elected officials,” said HAAR President Cindi Peters-Tanner. “As a result, our real estate market has out-performed national trends and it continues to be the best place in the nation to buy or sell a home.”
As a result of the local market’s success, inventory remains a concern.
According to the reports, Madison County held 6.4 months of housing supply at the end of 2015. Since then, that number has dropped to 1.8 months while, nationally, inventory has risen from 5.1 months to 5.9 months.
The report said local new construction will need to grow considerably to meet future demand.
Additional findings of the HAAR / UAH report include:
- Home prices are rising locally and national at the same rate of 4.5 percent.
- Heightened labor force participation and median household income have increased the number of local residents with the ability to afford a house.
- Local population growth continues to outpace national growth.
- New construction accounts for roughly one-quarter (26 percent) of all home sales, beating the national average of 21 percent.
- Since 2015, the Madison County residential real estate market has led the national average in new home sales percentage and population growth rate.
HAAR has partnered with the UAH College of Business to produce quarterly real estate economic reports to provide Realtors, their clients, public officials, community stakeholders, and the general public an up-to-date snapshot on the local housing market. This information helps our community anticipate positive or negative changes as we look ahead to new growth and the challenges it brings.
For information, visit HAAR.realtor/real-estate-economics-reports.