Real Estate Update: Local Inventory Increase Mirrors National Trend

Inventory of residential real estate units continues to climb from its nadir of last year, both nationally and here in Huntsville. 

Reporting from the University of Alabama’s Center for Real Estate tracks real estate inventory listed for sale in the Huntsville area dating back to October 2012. From a peak of 3,192 in October of 2014, the rising demand for housing saw a sharp decline, which was exacerbated by the turbulent events of 2020. By October of 2021, the inventory of units listed for sale had reached a low of a mere 756 units. With the Covid restrictions eased and delayed construction projects able to be completed, that number shot up to 1,643 units in October of this year. 

Weekly tracking by the Huntsville Area Association of Realtors shows that that upwards trend of increasing inventory has continued, with the report for the week ending November 19, 2022 showing a 75.5% increase in single-family units, up to 2,992.

This mirrors a trend reported by Realtor.com’s Monthly Housing Market report, which shows a national average of 33.5% increase of inventory in October of this year relative to the year previous. 

This trend is also exacerbated by a decreasing rate of sales. Pending sales in the Huntsville area continued to decrease, with a 32.8% decline for the week ending November 19. With fewer sales closing and homes staying on the market for longer, this shifts bargaining power towards buyers. 

Reporting of the October percentage of list price received shows that, from October of last year to October of this year, the average dipped down to 98.8% of list price received. It would not be surprising to see that continue once the November monthly statistics are compiled and reported. With this slowing of excess momentum, the Huntsville real estate market should see prices continue to remain below the national average, even as continued demand sees prices climb over all. 

As always, the Huntsville Business Journal will continue to bring its readers up-to date information on the real estate market.