Q3 Real Estate Economic Report Shows Inventory at Pre-Pandemic Levels

The Huntsville Area Association of Realtors (HAAR), in partnership with the UAH College of Business, has released its Q3 Economic Report for 2023, which covers the Huntsville-Madison County real estate market. 

Of the statistics compiled by the Report, one of the most significant is the housing inventory. Inventory has risen 20% compared to Q3 2022, and is officially back to pre-pandemic levels. At 1,807 units, the inventory is at the highest level since January of 2018. 

The average days for single-family units to stay on the market dipped slightly from Q2 2022, standing at 26 days compared to 32 days on average. However, this still marks a 100% increase in average days on the market compared to Q3 2022, where the average was only 12 days. 

40% of homes sold during Q3 2023 were at listing price, while 39% sold under the asking price. That leaves 21% sold at above listing price. 

With a total of 1858 homes sold in Q3, it marks the lowest amount of sales in Q3 since 2016. 

The national rate for 30-year, fixed-rate mortgages hit 7.31% in the last week of September, which was the highest level since December 2000. However, this high interest rate has succeeded in checking inflation; the consumer inflation rate for Q3 2023 was 3.7%, which is a 55% decrease from Q2 the previous year, where the inflation rate hit 8.2%. 

The median sales price took a minor dip, down to $331,705 from $336,000 in Q3 2022. 

HAAR and Valley MLS President Chris Hulser-Hoover commented on the median sales price specifically. 

“We are pleased to see the Median Sales Price in Madison County stay around the same rate the last few months. With inventory still on the rise and mortgage rates averaging close to historical levels, the market is poised and ready for buyers and sellers to enter,” said Hulser-Hoover. 

The report concludes that the trends of sales and inventory suggest a likely dip in sales for Q4. This is despite indicators that the median household income for Madison County rose to $81,000, and the population of Madison County continues to grow, reaching 406,026 in July, swelling the workforce to 205,157 in August. 

The Huntsville Business Journal will continue to monitor and report on real estate market conditions.