Huntsville/North Alabama Area MLS
This is a Summary of our 100 page monthly report.
Observations Huntsville, Alabama Residential Real Estate Market June 2008:
June total dollar sales in the Huntsville, Alabama area were $170,572,967, 4% higher than last
month’s $164,481,157, and 25% below last year’s level (Section A Page 4). The Huntsville, Alabama area is still joining the rest of the country in experiencing a slowdown in sales as exemplified by the downward curve shown by the 12 month moving average of total dollar sales. It looks like the gross sales are settling into a range between the 2006 and 2004 levels. For the first half on 2008 sales were down by 18% to $875,052,231 vs. $1,072,474,861in the same period of 2008. Based on the way we are seeing the sales levels elsewhere as well as this data I would expect this trend (sales between the 2006 and 2004 levels) to be the case for at least the next year or so. So this is what we think a bottom look like. That does not imply a recovery, simply a stop of the previous falling levels. We still expect to see prices come down in the very slow market.
We do see inventory build–up, now at the highest level of months of inventory for both new
(9.7 months) and used houses (8.9 months) since 2005 in all price ranges with the situation being quite acute for higher priced houses. For new and used houses over $300,000. We see fairly rapidly rising inventory levels of over a year. Click on the table on the right for details of inventory and sales by price range and new vs. used. Our full report has this info broken down by area and history. Absolute numbers of active listing have been moderating slightly for new houses but used houses continue to come on that market faster than they are selling. There are 14% more houses active than in June of 2007 against the lower dollar sales cited above. (Chart section A page 4). Inventory continues to build in all price ranges and both new and used houses.
The builders in the Huntsville area are not doing a good job of reacting to the market conditions and constraining supply. It is unusual to see months of supply for new houses exceeding used house months of supply. Although this situation is beginning to improve. Consumers, sellers of existing houses are having a harder time as the supply increases. The absolute level of used houses for sale is still increasing each month and at an all time record. The build up of existing housing supply will continue to impact the new housing market.
Total active listings increased from 8,333 in May* to 8,473 in June an increase of 140. (See Page E-3). There were 279 new house new listings (an increase from 274 last month), while sales of new houses decreased to 181 for the month from 215 in May. New houses new listings ran 1.5 times the rate of sales (Section B Page 1).
Active New listings decreased from 2,139 last month to 2,077 this month, a decrease of 62 (Page E-3). Active Used listings increased from 6,194 last month to 6,396 this month, an increase of 202 (Page E-3). Total unit sales deteriorated from 957 in May to 949 in June a decrease of 8 units.
New sales deteriorated from 215 homes last month to 181 this month, a decrease of 34.
Used sales improved from 742 homes last month to 768 this month, an increase of 26 (Sect E Page 3).
This further illustrates the impact of the used inventory build up on the new housing market. Absorption for new homes was 9.7 months of inventory in June vs. 9.7 last month. This is still an increase of .7 months over last year at this time, see Section E page 8. Absorption for used homes was 8.9 months of inventory in June vs. 8.4 last month. This is a deterioration of 2.7 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 169 days vs. 145 days last month, with used at 100 vs. 107 last month. (See Section A Page 18).
Average sales price for sold new homes was $253,018 vs. $254,931 last month. (Chart Sect A Page 2)
Average sales price for sold used homes was $158,387 vs. $145,499 last month. (Chart Sect A Page 2)
*All references to last month numbers are revised, to pick up late entries (made after our prior publication date) to the MLS system.