January Monthly Report Shows Price Dip

The Huntsville Area Association of Realtors (HAAR) has released their monthly report for the month of January. 

The report indicates that the average price of a single-family home in Madison County dropped by around $17,000 from December 2022. 

With a total of 1493 homes on the market, the inventory of units available for purchase has nearly tripled since January of last year. This influx of inventory has resulted in the month’s supply of inventory to increase by 140%, up to 2.4. 

Single-family units spent an average of 36 days on the market in January, up from 19 in January 2022. 

Accompanying the dip in average list price is a corresponding rise in the Housing Affordability Index, which sits at a straight 100 for January. That is to say, the median household income for Madison County is now 100% of what’s necessary to qualify for a median-priced house at prevailing interest rates. 

This index has risen from the 95 rating of December, but is still 35 points below January of 2022, where the HAI sat at 135. 

Mortgage rates continue to lower, with the figures provided by Freddie Mac, from the first week of February, averaging 6.09%. This decline in mortgage rates, which peaked at 7.08% in November, contributes to making housing more affordable. However, it may not be prudent to count on those rates continuing to decline at that rate for the future. 

The Chief Economist of Moody’s Analytics, Mark Zandi, predicts that, due to continuing efforts to control inflation, interest rates will continue to hover somewhere between 6 and 6.5% for most of 2023. 

This may have a dulling effect on the predicted market thaw for spring, when new rules and regulations for financing, which are designed to make homeownership more affordable for a wider spectrum of people, will come into effect. 

However, the demand for housing in Huntsville continues to be high, and with more and more inventory coming to the market in Madison County, the spring thaw should be brisk, though perhaps not magnificently-explosive in scale. 

According to real estate tech-company Redfin, investors nationwide are pulling back from speculative real estate, due to the cool market and potential price drops. This may actually prove a boon for residents looking to buy homes in which to live, as individuals rarely have the cash to compete with the deep, collective pockets of investment institutions. 

In short, with these investment bodies keeping their shenanigans down to a dull roar, the market should – barring unforeseen catastrophe from out of nowhere – reach an equilibrium between residents looking to buy, and property owners looking to sell. 

In such a market, the sky-high profits of the past few years would be a thing of the past, but the market would be more indicative of the real needs of the actual people who live in the area. 

“Ensuring that all Madison County residents can attain the dream of home ownership” is the top priority of the HAAR, according to HAAR President Chris Hulser.

For more information, please visit haar.realtor.