HAAR April monthly report indicates strong demand

The Huntsville Area Association of Realtors (HAAR) has released their monthly report for the month of April. 

This report shows heightened market activity across the ValleyMLS region, which covers the North Alabama counties of Madison, Morgan, Lawrence, Limestone, DeKalb, Etowah, Cherokee, Jackson, and Marshall. 

The most dramatic figures from the report centered around new listings, with a 30.9% increase in single-family units listed, and a staggering 92.5% increase for townhouse/condo units. 

Inventory continued to be added to the market, with an increase of 32.2% for single-family homes, and 143.6% for townhouse/condo units. Here in Huntsville/Madison County specifically, the month’s supply of inventory figure rose by 39.1% for single-family units and 170% for townhouse units. This brought the total number of homes on the market for Huntsville/Madison County up to 1973 units. 

There were 1211 pending sales in Huntsville/Madison County for the month of April. This is up from 1069 in April of 2023, and indicates that the market may have adjusted to the effects of the interest rate shock of 2023. 

This activity has caused the average price to resume creeping upwards once more. The average sales price for a home in Huntsville/Madison County reached $375K, up from $360K the previous year. 

The median sales price, across the state of Alabama, reached $275K, which is well below the national median figure of $430K for the month of April 2024, as reported by Realtor.com.

“The spring market has brought a welcome surge in new listings, giving buyers more choices. However, with demand still outpacing supply, the market remains highly competitive,” said Kurtis Krueger, CEO of Huntsville Area Association of Realtors and ValleyMLS. 

On the national scale, the market continues to struggle with the stubborn persistence of elevated inflation rates. This caused mortgage rates to resume climbing in the month of April. While experts expect the Federal Reserve to slash mortgage rates, it is likely that the first cut, instead of taking place in June as originally expected, could be delayed as the Fed continues to wrangle with the vexing issue of inflation. 

The continuing crisis of housing affordability has sparked the creation of a bipartisan Congressional Housing Caucus to investigate and advocate for potential solutions to this issue. The move was lauded by eleven of the largest and most influential industry groups, including the National Association of Realtors (NAR), the National Association of Home Builders (NAHB), the Mortgage Banking Association (MBA), and many others. 

A press release statement from the NAR, on the formation of this caucus, reads: 

“Lawmakers from across the political spectrum are in overwhelming agreement that this nation is facing a housing affordability crisis. Homeownership is a bipartisan issue, and we applaud these members of Congress for forming a caucus to work across the aisle to make housing more accessible. We look forward to working closely with this group to further advance our advocacy efforts to increase the housing supply and help individuals from all backgrounds find a path to homeownership.” 

The Huntsville Business Journal will continue to report developments in the real estate market, both locally and on the national scale.