- We report detail on 190 active new construction subdivisions We select all subdivisions with more than 5 sales of “NEW’ houses in the last 12 months and provide detailed breakdowns.
- The breakout changes monthly depending on the sales threshold. Those that do not make the 5 sales threshold are grouped in the “OTHER” category (by area).
- The system monitors all 1500 subdivisions in the Huntsville area for NEW houses only.
- As a general rule, the larger subdivisions, which have detailed breakouts, have lower months of inventory and lower “Failure rates” than the smaller ones (see below).
- In this case OTHER has 14.5 months of inventory as compared with an overall total of 9.2 for new as reported in the Summary section located in Section One of this series.
- This OTHER group also tends to cluster in the higher price ranges, which we have pointed out as problematic. However, in this area there are several subdivisions showing larger months of inventory available with two of them at the high end of the price range and the third at the lower end. The indication of high months of inventory can be due to being very new on the market and not having long sales histories, but it can also point to other issues.
- We also see the 12 month “Failure rate”. “Failures” are those listings that terminate in something other than a sale. The builder may cancel a listing and then re-list the property with a new agent, or take other similar actions. This tends to be a sign of “seller frustration”. Note that we report failures in the summary tables as well, although those are one month figures. Still, high failure rates in new or used housing is a caution note that something is causing “Seller Fatigue”. Depending on where you are coming from you could simply attribute it to “buyers on strike”. This area tends to have a number of New homes scattered in smaller and or built out areas which is the reason that there are such a high number in the OTHER subdivision category.
- The full report also shows the most active builders in this area are ALA HERITAGE CONSTR, HPH HOMES, LLC and ADAMS HOMES, LLC., each with more than 30 home sales in this area in the last 12 months.
In the full report we have charts showing data by price range, details of new listings vs. sales and many other features all of which can provide perspective on this difficult market.