The numbers are in for Madison County’s residential real estate market, for the week ending October 29, 2022.

Much of the new inventory on the market is in townhouses and condos, which are typically more affordable than single-family units. In the month of September of this year, townhouse/condo units sold for, on average, $243K, compared to the $309,900 median price of a single-family unit that same month.

Inventory increased for both types of residential units, with single-family units increasing 71%, to make 2,886 units available, while the townhouse units’ increase making 179. Pending sales continued to slow, with townhouse units decreasing 10% to make only 9 pending sales that week, while the 37.7% decrease in single-family unit pending sales made for 192.

Interestingly, while townhouse units saw a 40% increase in new listings, single family units saw a 15% decrease, irrespective of the new inventory coming onto the market.

When the monthly report for the month of October is released, it is likely that it will show a dip in the median sales price for a unit. According to ATTOM Data Solutions, the nationwide profit margins on the median residential real estate unit, both single-family and townhouse, dropped an average of 3% between the second and third quarter of 2022, across 70% of the 188 metro areas tracked. However, the slowdowns and dips are not likely to be as significant here as elsewhere across the United States: even a slowdown to units spending 19 days on average for Madison is considerably quicker than the national average of around 50 days on the market for September 2022,

This is indicative of the continuing high demand for housing in Huntsville, which is likely to keep the local economy at least somewhat buoyed relative to other places. Borrowing an analogy from the automotive world, these statistics may be likened to a gentle, gradual downshifting of gears into a new equilibrium, instead of abruptly yanking the transmission out of gear and grinding up the cylinder. Things could be considerably worse, and in many places around America, they are.

The Huntsville Business Journal, in partnership with the Huntsville Area Association of Realtors (HAAR), will continue to track the conditions of the real estate market, and bring our readers up-to-date information. For more information, please visit HAAR’s website here.