The law of supply and demand is being upheld by the local real estate market.

In the February residential report from the Alabama Center for Real Estate, there is less than a one-month inventory of homes with a record low of less than 550 homes for sale last month. Meanwhile, prices continue to climb with the average sales price for a house approaching $300,000.

Huntsville residential units listed for sale last month increased by 1,068 units when compared to the same period last year. Month to month, there were just 549 homes for sale in February, compared to 594 in January.

“Historical data indicates that Febraury inventory on average (2016-20) decreased 2% from January,” the report said. “The current month’s inventory decreased 7.6% from last month’s total of 594 homes.”

In the same period, prices shot through the roof. The average sales price in Huntsville for February was $292,583, a
12.9% increase from $259,208 one year ago. The average price last month was an increase of more than $12,000 (4.4%) over January.

“Historical data indicates that February average sales prices on average (2016-20) increased by 0.3% from January,” ACRE said. “The current month’s average price increased 4.4% from the prior month.”