The Huntsville Area Association of REALTORS® (HAAR) recently published its 2021 Annual and 4th Quarter Real Estate Economics reports.

For those of you who have been following the regional housing market over the past few years, the numbers may not come as a big surprise. Despite facing down a pandemic for the past two years, home sales remain vigorous while inventory continues to drop, especially in the moderately priced range –$250,000 – and under.

It is also evident that housing prices have leaped significantly. When comparing 4th Quarters 2020 and 2021, the median price of a home has gone up 17%.

The greatest number of listed homes at year-end were in the $300-$350,000 range, while the inventory of available homes priced below $300,000 dropped a whopping 64%. The price increases have driven the sales and inventory of listed homes into the higher price bracket, leaving very few homes available under $250,000.

According to HAAR’s 2021 Annual Report, Madison County REALTORS® sold 9,569 homes, a number that almost doubles the 4,776 homes that were sold in 2012. What’s more, there were 1,044 more homes sold at the end of 4th Quarter 2021 than were on the market at the beginning of the 4th Quarter.

Residential real estate in Madison County clearly reflects the strength of the local economy with record levels of home sales and prices. Although the inventory of listed homes has continued to shrink, the number of newly constructed homes increased by 3%. This is despite the supply chain disruptions and labor force challenges experienced throughout 2021.

The 16-quarter trend for sales and inventory levels suggests that 1st Quarter 2022’s total sales could be approximately 2,460, while the inventory of available homes might fall below 500 units. However, if recent levels of new construction continue, inventory could improve and support a greater number of sales.

Several economic indicators demonstrate a decade of continued development for the Madison County area. In 2021, the estimated population increased to 388,791. As of last November, the Madison County workforce was at 189,711.

Both the population and workforce are destined for an even greater growth spurt as new tenant organizations come to Redstone Arsenal and more manufacturing firms make Madison County their home.

In 2021, the number of household units was 171,542. This denotes all types of housing units, which are comprised of nuclear families, extended families, individuals living alone, as well as unrelated

roommates. As the population grows, it’s predicted that the housing market will follow suit, proportionately.

The Gross Domestic Product (GDP), which is a monetary measure of the market value of all the final goods and services produced within a specific timeframe for Madison County rose to a hefty $26.8 billion in 2020, which is the most recent estimate available.

In the near-term, the strong, continued growth in good-paying jobs in Madison County are likely to benefit first-time home buyers. Barring a significant economic event, such as an interest rate hike or supply chain shortages, the supply and demand in the Madison County home market should maintain its upward trajectory.

Although the anticipated growth appears to be centralized, it is not limited to just Madison County. Neighboring counties both in Alabama and Tennessee are likely to experience similar housing market impacts, further demonstrating the overarching relationship of the regional economy.

“2021 showed another year of success for homebuyers and sellers because of REALTOR® professionalism and dedication to their clients,” said Isaac Winkles, 2022 HAAR President. “We are thankful for the steady leadership of our elected officials and their staff for fostering an environment that promotes the American Dream of owning a home. We will continue our work with local builders and other stakeholders to ensure inventory increases along with home values.”