The Huntsville Area Association of Realtors (HAAR) has released its monthly report on the state of the market over the month of February.

Of the various statistics compiled in the report, the dramatic increase in average time spent on the market stood out the most.

The average time a house in Huntsville-Madison County spent on the market more than tripled compared to February 2021. Houses spent an average of 36 days on the market, compared to a mere 11 in February the previous year.

This is an indicator of the continuing aftershocks on the market, from the interest rate hikes of 2022.

The frenetic pace of buying that distinguished the years of 2020 and 2021 dramatically slowed, as the sharply-increasing interest rates not only dissuaded would-be buyers, but also made potential sellers think twice about whether or not they wanted to sell their homes and enter the buyer’s market under those conditions.

According to a survey conducted by data analytics firm Black Knight, 40% of all current mortgages in the US originated from 2020 or 2021, with nearly a quarter of all current mortgages originating in 2021 specifically. The record low interest rates of mortgages in the pandemic economy makes holding on to those properties both easier and less expensive than contending with current interest rates.

However, the effect of seller reticence could be somewhat mitigated by the simply massive influx of new housing units introduced to the market in February.

The number of homes on the market also nearly tripled in February compared to the same month a year previous. Huntsville-Madison County had 1405 homes on the market in February, up from 511 in February of 2022.

A larger number of homes for sale, which are spending longer on the market, gives would-be buyers a potential opportunity to negotiate favorable terms on attractive properties. As always, the Huntsville Business Journal recommends consulting a professional realtor, and your financial institution, for more specific information on available financing options.

The average price continued to tick upwards in February, with an average sale price of $374K in Huntsville-Madison County, up from $356K the previous year. This is despite declining sales, with 452 homes sold in February, down from 574 in February 2022.

The Huntsville Business Journal will continue to bring its readers news on the latest developments in the real estate market.