Real estate update: Sales uptick both nationally and locally

The September monthly report from the National Association of Realtors showed a jump of 7.4% in pending sales compared to August, with a 2.6% year-over-year increase in contract signings in September. 

NAR Chief Economist Chief Economist Lawrence Yun weighed in on these developments, attributing the rise to “the combination of lower mortgage rates in late summer and more inventory choices,” before adding “further gains are expected if the economy continues to add jobs, inventory levels grow, and mortgage rates hold steady.” 

Pending sales were up in regions across the country, with the South seeing a 6.7% increase. 

Active listings were also up in regions across the country, with the South leading the market in new active listings, posting a massive 34% increase. 

Here in Huntsville, a report from the Huntsville Area Association of Realtors (HAAR), dated for the week of October 19, shows that pending sales are up for both single-family units and townhouse units. Single-family units saw an increase of 6.9%, while townhouse units were up by 38.5%. 

New listings for single-family units were up by 2.4%, while townhouse units saw a decrease of 59.3%.

Inventory continued to rise in the Huntsville/Madison County market, with a 28.4% increase in inventory for single-family units, while inventory of townhouse units increased by 136.7%. 

Lawrence Yun weighed in on housing inventory increasing across the nation.

“During the next two years, expect a slower rate of growth in home prices that’s roughly in line with the consumer price index because of additional supply reaching the market,” Yun predicted. 

However, mortgage rates have begun to creep back up following September’s surprise move from the Federal Reserve, which had cut interest rates by 50 basis points, or 0.50%, instead of 0.25% 

Interest rates have climbed up to a 6.73% national average as of October 30, 2024, reaching the highest level since July. 

Time will tell if the Federal Reserve acts again this month. 

The Huntsville Business Journal will continue to report on developments in the real estate market, both nationally and here at Huntsville.