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Huntsville Housing Sales Up but Median, Average Sales Prices Drop

It was hot in July – and we’re not just talking weather.

Huntsville home sales continued to climb and last month was no exception.

However, the average and median sales prices for houses in July saw a drop from June’s prices.

According to the Alabama Center for Real Estate’s monthly report for July, 929 houses were sold last month, compared to 863 a year ago and 847 in June. Usually, the report said, July’s sales fall from June’s sales.

“Historical data indicates that July residential sales on average (2015-19) decrease from June by 6.1 percent,” the ACRE report said. “This month’s sales increased 9.7 percent from the prior month.”

There were 663 existing single-family homes sold, compared to 332 a year ago, while newly built houses accounted for 248 of July’s count, along with 18 condos.

While July’s median and average prices were up from a year ago, they dropped compared to June’s numbers.

The median sales price in Huntsville for the current month was $249,900, a 12.1 increase from July 2019’s
median sales price, but the median price was “historically” down from June’s median price of $253,900.

“Historical data indicates that July median sales prices on average (2015- 19) increase 0.7 percent from June,” ACRE said. “The current month’s median price decreased 1.6 percent from the previous month.”

Like the median sales price for houses, average sales prices, while rising from a year ago, saw a drop from June.  The average sales price for July was $277,844, a 10.8 percent increase from $250,742 one year ago. But it was off some 2.3 percent from June’s price of  $284,489.

“Historical data indicates that July average sales prices on average (2015-19) increase by 0.7 percent from June,” the report said. “The current month’s average price decreased 2.3 percent from the prior month.”

The report did not cite a possibility for the 3 percent turn-around (from 0.7 percent increase to 2.3 percent decrease) in prices.

In spite of the price drop, with just a 1.1-month inventory of available houses, it’s still a seller’s market, according to ACRE.

“July’s 1.1 months of supply is well below the five-year average of 3.5 months,” the report said. “Huntsville’s inventory-to-sales ratio is 4.9 months below equilibrium, indicating a continued transition where sellers typically have elevated bargaining power.”

 

Residential Sales Increase from April to May

Huntsville residential sales increased nearly 8 percent from April to May, according to the latest data from the Alabama Center for Real Estate.

The monthly report showed 719 units (485 existing family homes, 226 new construction and 8 condos) were sold in May, compared to 667 units in April, an increase of 7.8 percent.

“Historical data indicates that May residential sales on average (‘15-‘19) increase from April by 10.2 percent,” the ACRE report said. “(May’s) sales increased 7.8 percent from the prior month.”

However, the number is a decrease of 43 transactions when compared to the 762 units that were sold in May 2019, a drop of 5.6 percent.

In April, the average selling price was an all-time high of  $279,833. In May, the average sales price in Huntsville for May was $271,954, a 2.8 percent drop from April but a 5.5 percent increase from one year ago.

“Historical data indicates that May average sales prices on average (‘15-‘19) increase by 4.6 percent from April,” the report said. “The current month’s average price decreased 2.8 percent from the prior month.”

The homes are on the market just 29 days, compared to 33 days in April and 54 in May 2019, and the local inventory of units available is 1,106 in May, compared to 1,186 in April. Huntsville residential units listed for sale in May decreased by 167 units when compared to the same period last year.

“Historical data indicates that May inventory on average (‘15-‘19) decreases 5.1 percent from April,” the report said. “The current month’s inventory decreased 7.1 percent from last month’s total of 1,186 homes.”

Huntsville Housing Sales Up Nearly 15% Over Year Ago

Though the number of house available for sale is the lowest in years, Huntsville residential sales for the first quarter of this year was nearly 15 percent higher than the first quarter of 2019.

The sales, according to the quarterly report from the Alabama Center for Real Estate, for the first quarter totaled 1,801 units, representing an increase of 14.9 percent when compared to 1,567 units sold in the first quarter of 2019.

“Compared to historical data, first quarter sales are 20.1 percent above the three-year quarterly average and 31.1 percent above the five-year quarterly average,” the report said.

The number of houses available for sale in the first quarter was 845 – a 32.5 percent decrease compared to the first quarter of 2019, when 1,252 houses were available.

And, not only did sales increase, so did the median and average prices – thanks to the low inventory.

The median selling price in Huntsville for the first quarter of 2020 was $233,688, a 12.2 percent increase from the first quarter of 2019’s median selling price of $208,333. The average sales price for the first quarter was $261,455, an 11 percent increase from the first quarter of 2019’s average sales price of $235,610.

“Compared to historical data, the fourth quarter median sales price is 21.1 percent above the three-year quarterly average and 28.3 percent above the five-year quarterly average,” the report said. “The fourth quarter average sales price is 20 percent above the three-year quarterly average and 26.4 percent above the five-year quarterly average.”

The houses that were available, weren’t on the market long, either. The average number of days on the market in the first quarter of 2020 was 40, representing an improvement of 15 days from one year ago.

Huntsville area home sales, average prices up; inventory down

The number of homes sold in Huntsville was up over a year ago, according to the latest report from the Alabama Center for Real Estate.  The median sales price and average sales price of homes last month also saw an increase over February a year ago.

The report also showed this was a “seller’s market” with a low inventory of homes available.

The residential sales totaled 520 units, representing an increase of 83 transactions from last February’s 437 units. The median sales price for February was $201,050, a 6.7 percent increase over the February 2018 price of $188,500.

Also, the report said sales increased from January but the average and median prices were down.

“Historical data indicates that February residential sales on average (2014-18) increased from January by 8.4 percent,” the report also said. “This month’s sales increased 8.8 percent from the prior month.

“Historical data indicates that February median sales prices on average (2014-18) increased 2.4 percent from January. The current month’s median price decreased 6.5 percent from the previous month.”

The average sales price in Huntsville for February was $235,147, a 7.4 percent increase from one year ago, but it was a drop from January.

“Historical data indicates that February average sales prices on average (2014-18) increase by 3.3 percent from January,” ACRE said. “The current month’s average price decreased 1.1 percent from the prior month.”

The Huntsville area currently has 2 1/2 months of supply, down from 4 months in February 2018.

“February’s 2.5 months of supply is well below the 5-year average of 6.8 months,” the report said. “Huntsville’s inventory-to-sales ratio is 3.5 months below equilibrium, indicating a continued transition where sellers typically have elevated bargaining power.”