According to Federal Reserve Economic Data (FRED), the national rate of homeownership across the United States saw a slight uptick in Q3 2022. The percentage of owner-occupied homes rose 0.6 points relative to Q3 2021, to a total of 66%. This increase occurred despite the inflation and mortgage rate shocks that jolted the market this year, which is indicative of housing demand holding steady.

It is also important to note that this is specifically owner-occupied housing. As a 2017 economic report by Princeton University, Economic Consequences of Real Estate Speculation discovered, a concentration of non-owner-occupied homes in a zip code effectively amplifies the effects of boom-and-bust cycles: higher highs and lower lows, the inertia of which can have cascading disruptive effects on other economic areas.

An increase in owner-occupied homeownership is indicative of demand by consumers less looking to make a profit and more to actually live within the homes bought and sold, which in turn means a more stable median around which the market shifts. There will still be increases and decreases, but of a more steady nature, instead of large, wild swings.

Statistics provided by the Huntsville Area Association of Realtors (HAAR) that track residential real estate market conditions, accurate to the week ending November 12, show that a typical autumnal slowdown in the local market.

New listings and pending sales for single-family units are both down, with listings down 9.4% and pending sales down 38.1%. Townhouse units saw a more minor slowdown; while pending sales decreased 7.7%, listings were flat, with neither increase nor decrease.

Inventory continues to increase, with single-family units seeing a 71.1% rise, representing 2, 981 units, and townhouse inventory rising to 182 available in Madison County.

As always, the Huntsville Business Journal will continue to bring its readership the latest in market reporting.