Huntsville North Alabama Comments 1/15/08

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The Huntsville area still appears to be somewhat immune to the malaise in the rest of the country. Sales continue to run ahead of last year (section a page 4). For the 12 months ending December the total dollar sales were $2,093,872,110 up by 3.4% from year ago levels of $2,024,942,156.

There are 21.7% more houses active than in December of 2006. Total dollar sales decreased to $127,028,307 in December from $152,128,905 in last December a 16.5% decrease in dollar terms, against a much higher inventory number. (Chart section A page 4). Inventory continues to build but mostly in the higher price ranges. The “rolling over “ of the 12 month moving average on the overall sales graph is a big concern (section a page 1). 

We do see inventory build–up for higher priced houses for new and used houses over $300,000 we see fairly rapidly rising inventory levels of over a year. (Page E-1). Over $500,000; new house inventory levels are generally over 24 months. Total active listings decreased from 7,679 in November* to 7,346 in December a decrease of 333 or -4.3%. See page E-3. There were 355 new house new listings (a decrease from 362 last month), while sales of new houses declined to 188 for the month from 239 in November.  

New houses new listings ran to 1.9 times the rate of sales (section B page 1). The bulk of the increase in new house new listings was in the $100,000 to $300,000 range and fairly widely dispersed geographically (section A page 18). Active New listings decreased from 2,246 last month to 2,199 this month, a decrease of 47 (page E-3).

Active Used listings decreased from 5,433 last month to 5,147 this month, a decrease of 286 (page E-3). 

Total unit sales declined from 879 in November to 736 in December a decrease of 143 units.

New sales declined from 239 homes last month to 188 this month, a decrease of 51.

Used sales declined from 640 homes last month to 548 this month, a decrease of 92 (sect E page 3). 

Absorption for new homes remained at 9.4 months of inventory in December. This is still an increase of more than 2 months over last year at this time, see Section E page 8. Absorption for used homes remained at 6.4 months of inventory in December. This is a deterioration of 1.2 months from last year’s level at this time see Section E pg 8. Average Days on Market for sold houses for new houses was 113 days, 99 days for used houses. See section A page 18. Average sales prices for sold new homes were $254,391. (Chart sect A p2)Average sales prices for sold used homes were $138,825. (Chart sect A p2) I continue to be impressed by the dramatic increase in over $500,000 new houses listed. Inventory in all those price categories is over two year’s supply. Used houses show over 1 year of inventory going up to 4 years worth of inventory in the over $900,000 category. New listings have begun to moderate slightly for new houses in the higher price ranges and for the used houses in most price ranges.  

TWB 1/15/08

*All references to last month numbers are revised, to pick up late entries (made after our prior publication date) to the MLS system.


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