Huntsville July home sales grow 8 percent over last year

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The Huntsville median home sales price in July was $207,000, an increase of 9 percent from July 2016. (ACRE)

Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the North Alabama Multiple Listing Service, Huntsville/Madison County residential sales totaled 630 units during July, a growth in sales of 7.9 percent or 46 units from the same period last year. Year-to-date sales increased 11.3 percent from the first half of 2016. Two more resources to review: Quarterly Report and Annual Report.

For all of Huntsville’s area housing data, click here.

Forecast: Closed transactions in July were 28 units or 4.6 percent above the Alabama Center for Real Estate’s monthly forecast. ACRE’s year-to-date sales forecast through July projected 3,476 closed transactions, while the actual sales were 4,046 units, a favorable difference of 16 percent.

Supply: The Rocket City’s housing inventory totaled 2,314 units, a decrease of 14.6 percent from last July. New home inventory is down 31 units year-over-year, while existing single-family inventory is down 339 units.

The inventory-to-sales ratio in July was 3.7 months of housing supply. The market equilibrium (balance between supply and demand) is considered to be about 6 months during July. Huntsville continues to move in a favorable direction when it comes to its inventory-to-sales ratio. The market in July experienced a 17.7 percent increase in inventory when compared to June. Historical data indicate a typical 1.6 percent decrease from June to July.

Demand: Residential sales in July decreased by 15.3 percent from June. This direction is consistent with seasonal patterns and historical data indicating that July sales, on average (2011-2015), decrease from June by 6.4 percent. New home sales made up 25 percent of sales, an increase from 21 percent in July 2016. Existing single-family home sales accounted for 73 percent of total sales, down from 78 percent, while condos were 2 percent of sales, an  increase from 1 percent.

Pricing: The Huntsville median sales price in July was $207,000, an increase of 8.9 percent from July 2016 and up 8.9 percent from the prior month. This month-over-month direction is consistent with historical data (2011-2015) indicating that the July median sales price on average increases from June by 1.7 percent. Pricing can fluctuate as the sample size of data is subject to seasonal buying patterns. ACRE recommends contacting a local real estate professional to discuss pricing at the neighborhood level.

Industry perspective: “We are keeping our full-year economic growth outlook at 2 percent as risks to our forecast are roughly balanced,” said Fannie Mae Chief Economist Doug Duncan. “On the upside, consumer spending growth might not moderate as much as we have accounted for in our forecast. A build-up in inventory also should be positive for growth this quarter and nonresidential investment in structures will likely continue to improve as oil prices stabilize.”

The Huntsville/Madison County Residential Monthly Report is developed in conjunction with the Huntsville Area Association of Realtors to better serve North Alabama consumers.