Birmingham, Central Alabama Residential Real Estate Sales Continue To Improve In March

Birmingham Area MLS* Monthly Observations for March 2013

Dollar sales in March improved by 17% to $189,049,614 from February’s $161,712,660, up a healthy 8% from last March’s $174,568,674. The 12 month moving average line for total dollar sales continues to move up indicating improving market conditions. We are at the beginning of the busy months of the sales season and are seeing gains in dollars sales while unit sales are somewhat constrained.

Unit sales were up 17% to 1,122 in March from 960 in February, an increase of 162. This is down 1% from March 2012 at 1,133. Our ABRE/ACRE Projections for 2013 projected 1,277 sales for March. This number will increase as late sales are reported. For now, the projections indicated 12% higher than achieved for the month and 7% for the year. Please see here for a summary of the projections http://goo.gl/nytW8 and the spreadsheet with details and month by month projections by area http://goo.gl/GEYWa (see the tabs on the bottom).  New sales improved by 17 units to 119 homes this month from 102 in February and are off from 115 last year. Used sales improved 17% to 1003 homes in March from 858 last month, an increase of 145,  and down 15 from 1,018 last year(Sect E p.3). For the 1st Quarter, unit sales were up by 3% for the 1st quarter as compared with the 1st quarter last year to 2,943 from 2,855 units last year.

This month total inventory is 14% lower at 8,969 vs. 10,526 last year and 10,458 last month. The drop in the current month is caused by month-end expirations which should come back on the market shortly. Active New listings decreased to 765 in March from 1016 in February, a decline of 251 units (Sect E p.3).  Housing permits went down in Jefferson County to 68 for February from 96 in January. Shelby County permits went up to 33 from 16 (see website for details).

Absorption rate for New homes is fairly steady. New homes are at 6 months supply this month which is  better than last year at this time at 8 months (Sect E p.3). The New homes up to $700,000 price range have normal inventory levels in the 5-8 month range. Higher price ranges are one to two years of supply, although over $900,000 the new inventory is at 3 months (only one home). (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in March shows 6 months, two months better than the 8 months last year. Used Active listings at 8,241 are lower than the 9,612 last year (Sect E p.3). The number of homes listed in the over $400,000 price range is beginning to climb somewhat faster than sales, resulting in some upward drift in the months of sales.

Birmingham area Average Days on Market for New houses is 193 compared to last month at 197. The Used homes DOM was 148 in March, compared with 147 last month (Sect A p.18). NOTE: DOM for Used homes indicates that well priced homes are moving in less than 6 months.

Average sales price for Sold New homes decreased to $253,169 from $268,189 last month (Sect A p2). Average sales price for Sold Used homes increased to $158,447 from $156,594 last month (Sect A p2). The moving average price for Used Homes has been moving up steadily since the beginning of the year. The 12 month moving average line for New home prices has also been heading up quite nicely since the beginning of the year. Average Home prices, New and Used, are improving  (Sect A p2). The price of any specific home still remains under pressure.

TWB 4/13/13

Birmingham Real Estate Sales Show Positive Trends in February

Birmingham Area MLS* Monthly Observations for February 2013

Dollar sales in February improved by 15% to $156,249,103 from January’s $136,050,964, up a healthy 11% from last February’s $141,182,366. The 12 month moving average line for total dollar sales continues to move up indicating improving market conditions. We are still in the slowest three months of the sales season, so it is best not to try to read too much into these results, although the year over year gains are meaningful.

Unit sales were up 7% to 920 in February from 857 in January, an increase of 139. This is down 2% from February 2012 at 936. Our ABRE/ACRE Projections for 2013 projected 1020 sales for February and of course the reported number will increase as late sales are reported. For now, the projections indicated 10% higher than achieved for the month and 6% for the year. Please see here for a summary of the projections http://goo.gl/nytW8 and here is the spreadsheet with details and month by month projections by area http://goo.gl/GEYWa (see the tabs on the bottom).  New sales improved by 8 units to 99 homes this month from 91 in January and are off from 116 last year. Used sales improved 7% to 821 homes in February from 766 last month, an increase of 55,  and up 1 from 820 last year(Sect E p.3).

This month total inventory is 14% lower at 9,028 vs. 10,458 last year and 9,410 last month. The drop in the current month is caused by month-end expirations which should come back on the market shortly. It is encouraging to see total inventory remaining below 10,000. Active New listings decreased to 765 in February from 1016 in January, a decline of 251 units (Sect E p.3).  Housing permits went way up in Jefferson County to 96 for January from 62 in December. Shelby County permits went down to 16 from 17 (see website for details).

Absorption rate for New and Used homes is fairly steady. New homes are at 6 months supply this month which is  better than last year at this time at 8 months (Sect E p.3). New home supply last month shows 8 months. Under $100,000 New homes is at 11 months supply. The New homes in the $100,000-$700,000 price range have normal inventory levels in the 5-8 month range. Higher price ranges are one to two years of supply, although over $900,000 the new inventory is at 3 months (only one home). (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in February shows 8 months, two months better than the 10 months last year. Used Active listings at 7,999 are lower than the 9,487 last year (Sect E p.3). Interestingly, the under $100,000 market with an average list price of $59,571, which makes up 33% of all listings, is at 7 months of inventory which drags down the overall months of inventory for all homes. The number of homes in the over $900,000 price range is beginning to climb from a low level but the months of inventory is still high  (14 months) due to reduced sales levels.

Birmingham area Average Days on Market for New houses is 197 compared to last month at 201. The Used homes DOM was 147 in February, compared with 146 last month (Sect A p.18). NOTE: DOM for Used homes indicates that well priced homes are moving in less than 6 months.

Average sales price for Sold New homes increased to $266,885 from $225,344 last month (Sect A p2). Average sales price for Sold Used homes increased to $158,133 from $150,842 last month (Sect A p2). The moving average price for Used Homes has been moving up steadily since the beginning of the year. The 12 month moving average line for New home prices has also been heading up quite nicely since the beginning of the year. Average Home prices, New and Used, are improving  (Sect A p2). The price of any specific home still remains under pressure.

TWB 3/9/13

North Alabama February Sales Slightly Ahead of Last Year

Huntsville/North Alabama Area MLS Observations: Real Estate Market February 2013

February sales improved by 19% to $103,565,733 vs. January at $87,011,244. This was up 16% from last year’s $89,518,072 The twelve month moving average line on the total dollar sales chart is heading up.

Total unit sales improved 16% to 652 in February vs. 564 in January, an increase of 88. This was 5% better than last year at 623. Our projections for ACRE and Brander Real Estate for 2013 called for 690 sales in February so we are 5% under that, and year to date volume is 4% lower than our projection. See here http://goo.gl/nytW8 for an article sumarizing the projections. Here is the spreadsheet with month by month projections by area http://goo.gl/GEYWa (see the tabs on the bottom).

New sales improved to 121 this month vs. 102 last month, up 20.
Used sales improved to 531 this month vs. 462 last month, up 69 (Sect E  p.3).

Used inventory levels remain high this month at 11 months (see the chart Sect C p.1), with the situation particularly challenged in the higher price ranges. Used homes over $200,000 are still over 12 months of inventory and over $500,000 have more than two years of inventory.

New home absorption is 9 months of inventory overall with last month at 11 months)(E-1). The New Home inventory level in the $300,000-$400,000 is approximately 5 months. (Not bad!).

There continue to be a large number of housing permits issued in Huntsville city given the market conditions. For January there were 111, (estimate from census dept.), up from 59 in December (chart on the web site).

Total Active listings decreased this month to 8,262 compared to last month’s 8,543, and below last year at this time at 8,389, with the reduction exaggerated due to month-end expirations. (Sect A p.4 and Sect E p.3).  The reduction in inventory is a positive thing. The inventory reduction has been good for the last 8 months; we are however beginning to see some spring increase.

Active New listings decreased from 1,549 last month to 1,337 in February, down 212. (Sect E p.3). Active Used listings decreased from 6,994 last month to 6,925 this month, down 69 and slightly below last year’s amount at this time of 7,082. (Sect E p.3).

Average Days on Market for Sold New homes was 167 vs. 168 days last month, with Used at 163 in February compared with 162 in January (Sect A p.18).

Average sales price for Sold New homes was $253,783 vs. $239,108 last month. (Sect A p.2)
Average sales price for Sold Used homes was $137,209 vs. $135,546 last month. (Sect A p.2)

The average price line for Used homes is going up nicely. New home average prices seems to be showing positive direction as well.

TWB 3/9/13

January Birmingham Residential Sales Up 14% from Last Year

Birmingham Area MLS* Monthly Observations for January 2013

Sales in January declined by 21% to $132,100,460 from December’s $167,858,938, up a healthy 14% from last January’s $115,485,241. The 12 month moving average line for total dollar sales continues to move up indicating improving market conditions. This is the middle of the slowest three months of the sales season, so it is best not to try to read too much into these results, although the year over year gains are meaningful.

Unit sales were down 14% to 824 in January from 963 in December, a decrease of 139. This is up 7% from January 2012 at 768. Our ABRE/ACRE Projections for 2013 are not yet complete but should be shortly and will be forwarded as soon as completed. The January results are roughly in line with what we expect from the preliminary work on the forecast. New sales declined by 44 units to 87 homes this month from 131 in December and are off from 91 last year. Used sales declined 12% to 737 homes in January from 832 last month, a decrease of 95,  but up 42 from 695 last year(Sect E p.3).

This month total inventory is 15% lower at 8,781 vs. 10,384 last year and 9,086 last month. The drop in the current month is caused by month-end expirations which should come back on the market shortly. It is encouraging to see total inventory solidly below 10,000. Active New listings decreased to 782 in January from 953 in December, a decline of 171 units (Sect E p.3).  Housing permits went down in Jefferson County to 62 for December from 67 in November. Shelby County permits went down to to 17 from 23 (see website for details).

Absorption rate for New and Used homes is fairly steady. New homes are at 6 months supply this month which is  better than last year at this time at 8 months (Sect E p.3). New home supply last month shows 8 months. Under $100,000 New homes is at 10 months supply. The New homes in the $100,000-$700,000 price range have normal inventory levels in the 4-8 month range. Higher price ranges are one to two years of supply, although over $900,000 the new inventory is at 8 months (only two homes). (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in January shows 8 months, two months better than the 10 months last year. Used Active listings at 7,999 are lower than the 9,487 last year (Sect E p.3). Interestingly, the under $100,000 market with an average list price of $59,233, which makes up 33% of all listings, is at 7 months of inventory which drags down the overall months of inventory for all homes. There are fewer numbers of homes in the over $900,000 price range listed any time since early 2007, although months of inventory is still high due to reduced sales levels.

Birmingham area Average Days on Market for New houses is 201 compared to last month at 172. The Used homes DOM was 146 in January, compared with 141 last month (Sect A p.18). NOTE: DOM for Used homes indicates that well priced homes are moving in less than 6 months.

Average sales price for Sold New homes decreased to $227,836 from $262,835 last month (Sect A p2). Average sales prices for Sold Used homes decreased to $152,346 from $160,370 last month (Sect A p2). The moving average price for Used Homes has been moving up steadily since the beginning of the year. The 12 month moving average line for New home prices has also been heading up quite nicely since the beginning of the year. Average Home prices, New and Used, are improving  (Sect A p2). The price of any specific home still remains under pressure. Just a note: Average prices are up slightly from 2007 levels.

TWB 2/9/13

Birmingham December Sales Finish Well, Total Sales Up 8% For The Year

Birmingham Area MLS* Monthly Observations for December 2012

For 2012 Unit sales increased 8% to 13,472 from 12,468 last and are off 7% from our full year projection of 14,550. Total dollar sales for the year were up 15% to $2,307,752,868 from $2,002,963,782.

Sales in December declined by 9% to $163,401,188 from November’s $179,368,554, up a healthy 12% from last December’s $146,269,023. The 12 month moving average line for total dollar sales continues to move up indicating improving market conditions. This is the middle of the slowest three months of the sales season, so it is best not to try to read too much into these results.

Unit sales were down 10% to 941 in December from 1,048 in November, a decrease of 107. This is down 3% from December 2011 at 970. This is 14% unfavorable to our projection of 1,099 sales expected for December and 7% unfavorable year to date (this will improve as late sales are recorded). The complete monthly projections from ABRE, (a joint project between ACRE and Brander Real Estate) ,can be found here http://goo.gl/WFHrO along with the worksheets that show the methodology. New sales improved by one unit to 128 homes this month from 127 in November and off from 135 last year. Used sales declined 12% to 813 homes in December from 921 last month, a decrease of 108 (Sect E p.3).

This month total inventory is 16% lower at 8,519 vs. 10,174 last year and 9,943 last month. The drop in the current month is caused by month-end expirations which should come back on the market shortly. It is encouraging to see total inventory below 10,000. Active New listings decreased to 736 in December from 997 in November, a decline of 261 units (Sect E p.3).  Housing permits went down in Jefferson County to 67 for November from 77 in October. Shelby County permits went down to to 23 from 28 (see website for details).

Absorption rate for New and Used homes is fairly steady. New homes are at 6 months supply this month which is  better than last year at this time at 7 months (Sect E p.3). New home supply last month shows 8 months. Under $100,000 New homes is at 14 months supply. The New homes in the $100,000-$700,000 price range have normal inventory levels in the 4-8 month range. Higher price ranges are one to two years of supply. although over $900,000 the new inventory is at 8 months (only two homes). (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in December shows 8 months, two months better than the 10 months last year. Used Active listings at 7,783 are lower than the 9,304 last year (Sect E p.3). Interestingly, the under $100,000 market with an average list price of $59,615, which makes up 33% of all listings, is at 7 months of inventory, which drags the overall months of inventory down for all homes. There are fewer homes in the over $900,000 price range listed since early 2007 although months of inventory is still high due to reduced sales levels.

Birmingham area Average Days on Market for New houses is 172 compared to last month at 201. The Used homes DOM was 141 in December, compared with 148 last month (Sect A p.18). NOTE: DOM for Used homes indicates that well priced homes are moving in less than 6 months. If the home is not selling, reduce the price, particularly since we are in the slower sales season of the year.

Average sales price for Sold New homes increased to $262,386 from $233,626 last month (Sect A p2). Average sales prices for Sold Used homes decreased to $159,675 from $162,539 last month (Sect A p2). The average price for Used Homes has been moving up steadily since the beginning of the year. The 12 month moving average line for New home prices has also been heading up quite nicely since the beginning of the year. Average Home prices, new and used, are improving  (Sect A p2). The price of any specific home still remains under pressure. Just a note: Average prices are up slightly from 2007 levels.
TWB 1/12/13

Huntsville December Sales Healthy in December

Huntsville/North Alabama Area MLS Observations: Real Estate Market December 2012

Full year unit sales were 9,176 up 6% from last year’s 8,624  and 1% favorable to our beginning year projection of 9050. Total Dollars sales were up 8% to $1,496,095,829 from $1,383,326,336 last year.

December sales declined by 4% to $116,069,280 vs. November at $121,522,339. This was 5% above last year’s $110,904,366 The twelve month moving average line on the total dollar sales chart is heading up.

Total unit sales declined 8% to 662 in December vs. 720 in November, a decrease of 58. This was 5% lower than last year at 698.

Note that our projection for December was 651 in sales, so the actual results were 2% favorable for the month and 1% favorable year to date. Full spreadsheets and projections, (a joint project between ACRE and Brander Real Estate), are available at  http://goo.gl/WFHrO) .

New sales improved to 157 this month vs. 147 last month, up 10.
Used sales decreased to 505 this month vs. 573 last month, down 68 (Sect E  p.3).

Used inventory levels remain high this month at 11 months (see the chart Sect C p.1), with the situation particularly challenged in the higher price ranges. Used homes over $200,000 are still over 12 months of inventory and over $500,000 have more than two years of inventory.

New home absorption is 10 months of inventory overall, (with last month at 10 months) (E-1). The New Home inventory level in the $300,000-$400,000 is approximately 6 months. (Not bad!).

There continue to be a large number of housing permits issued in Huntsville city given the market conditions. For November there were 64, down from 97 in October(chart on the web site).

Total Active listings decreased this month to 7,906 compared to last month’s 8,684, and below last year at this time at 8,365, with the reduction exaggerated due to month-end expirations.
(Sect A p.4 and Sect E p.3).  The reduction in inventory is a good thing. But we must note that the inventory level has remained fairly constant over the last few months, stopping the decline.

Active New listings decreased from 1,423 last month to 1,311 in December, down 112. (Sect E p.3). Active Used listings decreased from 7,261 last month to 6,595 this month, down 666 and slightly below last year’s amount at this time of 6,963. (Sect E p.3).

Average Days on Market for Sold New homes was 150 vs. 153 days last month, with Used at 160 in December compared with 152 in November (Sect A p.18). Sellers, including bank owners, who do not adjust to the new price reality, contribute to the buildup of inventory.

Average sales price for Sold New homes was $258,141 vs. $244,308 last month. (Sect A p.2)
Average sales price for Sold Used homes was $149,586 vs. $149,405 last month. (Sect A p.2)

The average price line for Used homes is once again showing some stability. New home average price seems to be showing some positive direction.
TWB 1/12/13

Birmingham November Real Estate Sales Up 11% Year Over Year

Birmingham Area MLS* Monthly Observations for November 2012

Sales in November declined by 3% to $175,290,274 from October’s $180,739,461, up a healthy 11% from last November’s $158,075,509. The 12 month moving average line for total dollar sales continues to move up indicating improving market conditions. This is the beginning of slowest three months of the sales season. So it is best not to try to read too much into these results.

Unit sales were down 4% to 1,018 in November from 1,056 in October, a decrease of 38. This is up 5% from November 2011 at 972. This is 4% unfavorable to our projection of 1,055 sales expected for November and 7% unfavorable year to date. The complete monthly projections from ABRE, (a joint project between ACRE and Brander Real Estate) ,can be found here http://goo.gl/WFHrO along with the worksheets that show the methodology. New sales declined 9% to 124 homes this month from 126 in October, a decrease of 2 units. Used sales declined 4% to 894 homes in November from 930 last month, a decrease of 36 (Sect E p.3).

This month total inventory is 16% lower at 9,193 vs. 10,993 last year and 10,257 last month. The drop in the current month is caused by month-end expirations which should come back on the market shortly. It is encouraging to see total inventory below 10,000. Active New listings decreased to 764 in November from 993 in October, a decline of 229 units (Sect E p.3).  Housing permits went up in Jefferson County to 77 for October from 67 in September. Shelby County permits went up to  to 28 from 18 (see website for details). Permits are (marginally)exceeding sales once again.

Absorption rate for New and Used homes is fairly steady. New homes are at 6 months supply this month which is  better than last year at this time at 8 months (Sect E p.3). New home supply last month shows 8 months. Under $100,000 New homes is at 15 months supply. The New homes in the $100,000-$700,000 price range have normal inventory levels in the 4-8 month range. Higher price ranges are one to two years of supply (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in November shows 9 months, three months better than the 11 months last year. Used Active listings at 8,429 are lower than the 10,051 last year (Sect E p.3). Interestingly, the under $100,000 market with an average list price of $59,256, which makes up 33% of all listings, is at 7 months of inventory, which drags the overall months of inventory down for all homes.

Birmingham area Average Days on Market for New houses is 201 compared to last month at 181. The Used homes DOM was 148 in November, compared with 143 last month (Sect A p.18). NOTE: DOM for Used homes indicates that well priced homes are moving in less than 6 months. If the home is not selling, reduce the price, particularly since we are in the slower sales season of the year.

Average sales price for Sold New homes decreased to $234,210 from $247,711 last month (Sect A p2). Average sales prices for Sold Used homes increased to $163,589 from $160,783 last month (Sect A p2). The average price for Used Homes has been moving up steadily since the beginning of the year. The 12 month moving average line for New home prices has also been heading up quite nicely since the beginning of the year. Average Home prices, new and used, are improving  (Sect A p2). The price of any specific home still remains under pressure. Just a note: Average prices are up slightly from 2007 levels.

TWB 12/15/12

 

Huntsville November Real Estate Sales Up 15% Year to Year

Huntsville/North Alabama Area MLS Observations: Real Estate Market November 2012

November sales declined by 7% to $119,770,552 vs. October at $128,770,552. This was 15% above last year’s $104,331,518. The twelve month moving average line on the total dollar sales chart is heading up.

Total unit sales declined 5% to 710 in November vs. 793 in October, a decrease of 40. This was 6% favorable to last year at 670.

Note that our projection for November was 672 sales, so the actual results were 6% favorable for the month and 1% favorable year to date. Full spreadsheets and projections, (a joint project between ACRE and Brander Real Estate), are available at  http://goo.gl/WFHrO) .

New sales declined to 142 this month vs. 151 last month, decreasing 9.
Used sales decreased to 568 this month vs. 642 last month, down 74 (Sect E  p.3).

Used inventory levels remain high this month at 11 months (see the chart Sect C p.1), with the situation particularly challenged in the higher price ranges. Used homes over $200,000 are still over 12 months of inventory and over $500,000 have  more than two years of inventory.

New home absorption is 8 months of inventory overall, (with last month at 10 months) (E-1). The New Home inventory level in the $300,000-$400,000 is approximately 6 months. (Not bad!).

There continue to be a large number of housing permits issued in Huntsville city given the market conditions. For October there were 97 (census estimate), down from 99 in September(chart on the web site).

Total Active listings decreased this month to 8,074 compared to last month’s 9,039, which is below last year at this time at 8,915, with the reduction exaggerated due to month-end expirations.
(Sect A p.4 and Sect E p.3).  The reduction in inventory is a good thing. But we must note that the inventory level has remained constant over the last few months, stopping the decline.

Active New listings decreased from 1,502 last month to 1,202 in November, down 300. (Sect E p.3). Active Used listings decreased from 7,537 last month to 6,872 this month, down 665 and slightly below last year’s amount at this time of 7,562. (Sect E p.3).

Average Days on Market for Sold New homes was 153 vs. 166 days last month, with Used at 152 in November compared with 151 in October (Sect A p.18). Sellers, including bank owners, who do not adjust to the new price reality, contribute to the buildup of inventory.

Average sales price for Sold New homes was $243,408 vs. $252,636 last month. (Sect A p.2)
Average sales price for Sold Used homes was $150,012 vs. $140,894 last month. (Sect A p.2)

The average price line for Used homes is once again showing some stability. New home average price seems to be showing some positive direction. Prices for individual properties remain under pressure.

TWB 12/15/12

 

Birmingham October Sales up 19% From Last Year

Birmingham Area MLS* Monthly Observations for October 2012

Sales in October declined by 5% to $175,248,097 from September’s $184,208,759, up a healthy 19% from last October’s $147,669,623. The 12 month moving average line for total dollar sales continues to be tilted upward.

Unit sales were down 4% to 1,021 in October from 1,068 in September, a decrease of 47. This is up 2% from October 2011 at 998. This is 5% unfavorable to our projection of 1,085 sales expected for October and 8% unfavorable year to date. The complete monthly projections from ABRE, (a joint project between ACRE and Brander Real Estate) ,can be found here http://goo.gl/WFHrO along with the worksheets that show the methodology. New sales declined 9% to 120 homes this month from 132 in September, a decrease of 12 units. Used sales declined 4% to 901 homes in October from 936 last month, a decrease of 35 (Sect E p.3).

This month total inventory is 15% lower at 9,692 vs. 11,369 last year and 10,476 last month. The drop in the current month is caused by month-end expirations which should come back on the market shortly. It is encouraging to see total inventory below 10,000. Active New listings decreased to 765 in October from 1,010 in September, a decline of 245 units (Sect E p.3).  Housing permits went down in Jefferson County to 67 for September from 90 in August. Shelby County permits went down to 18 from 27 (see website for details). First time in a while that it seems that sales are exceeding permits, which is a good sign.

Absorption rate for New and Used homes is fairly steady. New homes are at 6 months supply this month, and better than last year at this time at 8 months (Sect E p.3). New home supply last month shows 8 months. Under $100,000 New homes is at 13 months supply. The New homes in the $100,000-$700,000 price range have normal inventory levels in the 4-6 month range. Higher price ranges are one to two years of supply (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in October shows 9 months, three months better than the 12 months last year. Used Active listings at 8,927 are lower than the 10,393 last year (Sect E p.3), (Sect E p.3). Interestingly, the under $100,000 market with an average list price of $59,242, which makes up 31% of all listings, is at 7 months of inventory, which drags the overall months of inventory down for all homes.

Birmingham area Average Days on Market for New houses is 181 compared to last month at 173. The Used homes DOM was 143 in October, compared with 145 last month (Sect A p.18). NOTE: DOM for Used homes indicates that well priced homes are moving in less than 6 months. If the home is not selling, reduce the price, particularly since we are in the slower sales season of the year.

Average sales price for Sold New homes decreased to $246,255 from $267,803 last month (Sect A p2). Average sales prices for Sold Used homes increased to $161,706 from $159,037 last month (Sect A p2). The average price for Used Homes has been moving up steadily since the beginning of the year. The 12 month moving average line for New home prices has also been heading up quite nicely since the beginning of the year. Average Home prices, new and used, are improving  (Sect A p2). The price of any specific home still remains under pressure. Just a note: Average prices are up slightly from 2007 levels.

The differences between our numbers and the Board of MLS numbers are  due to our taking in all the data in the MLS system while they report on a more concentrated area picked from the whole; therefore we have more of the surrounding rural areas, which are not as volatile.

TWB 11/10/12

October North Alabama Sales Up Modestly

Huntsville/North Alabama Area MLS Observations: Real Estate Market October 2012

October sales improved by 5% to $125,715,005 vs. September at $119,890,035. This was 22% above last year’s $102,760,335. The twelve month moving average line on the total dollar sales chart is heading up.

Total unit sales improved 5% to 779 in October vs. 739 in September, a decrease of 40. This was 19% favorable to last year at 657.

Note that our projection for October was 743 sales, so the actual results were 5% favorable for the month and .7%(that is less than 1%) unfavorable year to date. Full spreadsheets and projections, (a joint project between ACRE and Brander Real Estate), are available at  http://goo.gl/WFHrO) .

New sales declined with 149 this month vs. 164 last month, decreasing 15.
Used sales increased to 630 this month vs. 575 last month, increasing 55 (Sect E  p.3).

Used inventory levels remain high this month at 12 months (see the chart Sect C p.1), with the situation particularly challenged in the higher price ranges. Used homes over $200,000 are still over 12 months of inventory and over $500,000 have about three or more years of inventory.

New home absorption is 9 months of inventory overall, (with last month at 10 months) (E-1). The New Home inventory level in the $300,000-$400,000 is approximately 6 months. (Not bad!).

There continues to be a large number of housing permits issued in Huntsville city given the market conditions. For September there were 99 (census estimate), up from 118 in August (chart on the web site).

Total Active listings decreased this month to 8,461 compared to last month’s 9,193, which is below last year at this time at 9,171, with the reduction exaggerated due to month-end expirations.
(Sect A p.4 and Sect E p.3).  The reduction in inventory is a good thing. But we must note that the inventory level has remained constant over the last few months, stopping the decline.

Active New listings decreased from 1,472 last month to 1,261 in October, down 211. (Sect E p.3). Active Used listings decreased from 7,721 last month to 7,200 this month, down 521 and below last year’s amount at this time of 7,800. (Sect E p.3).

Average Days on Market for Sold New homes was 166 vs. 191 days last month, with Used at 151 in October compared with 167 in September (Sect A p.18). Sellers, including bank owners, who do not adjust to the new price reality, contribute to the buildup of inventory.

Average sales price for Sold New homes was $253,355 vs. $223,886 last month. (Sect A p.2)
Average sales price for Sold Used homes was $139,627 vs. $144,648 last month. (Sect A p.2)

The average price line for Used homes is once again showing some stability. New home average price seems to be showing some positive direction. Prices for individual properties remain under pressure.

TWB 11/10/12