Huntsville/North Alabama Area MLS Observations Huntsville, Alabama Residential Real Estate Market June 2010:
Total Dollar sales for the first 6 months of the year are running 10% ahead of the comparable period last year, at $728,972,221 this year vs. $665,648,849 last year. Total unit sales for the first 6 months increased 11% to 4,516 this year from 4,057 last year.
Total dollar sales increased a surprising 15% from May to June. June sales were $172,618,329 vs. May $150,021,406. This was 15% higher than last year $149,923,252. This is now four months in a row of substantiative sales increases. The twelve month moving average line on the total dollar sales chart shows a more pronounced upward trend. The sales increase is better than we see this month in the Birmingham area, although the inventory situation in Huntsville remains worse.
Total unit sales increased from 913 in May to 933 in June, an increase of 20.
New sales increased from 170 homes last month to 253 this month, an increase of 83. This is an exceptional showing for new home sales, the most since September ’07.
Used sales decreased from 743 homes last month to 680 this month, a decrease of 63 (Sect E p.3).
Used inventory levels remain high. Used homes are 13 months of inventory overall. The inventory situation remains even more challenged in the higher price ranges. Used homes over $200,000 are now at 21 months of inventory, and in $700,000-$800,000 price range over 10 years of inventory. Prices continue to be pressured.
New houses are at 8 months of inventory, and homes priced greater than $500,000 are over a year’s worth of inventory. (E-1).
There seems to be a large number of housing permits issued, given the market conditions. There were 68 new single family housing permits issued (May), down considerably from 99 in April in Huntsville City, according to the Census Department. This permit level is about the sales level for the comparable area. New home inventory remains high.
Total Active listings decreased by 3% this month to 9,388, compared to last months’ 9,684 but 9% greater than last year at this time, 8,608.(Sect A p.4 and Sect E p.3). (This will increase when reported next month.) New houses New listings are 1.2 times the rate of sales, which is much better than recent months (Sect B p.1). Active New listings decreased from 1,577 last month to 1,377 in June, down 200. (Sect E p.3). Active Used listings decreased from 8,107 last month to 8,011 this month, down 96. This is above last year’s level at this time (6,911) (Sect E p.3).
Absorption for New homes was at 8 months of inventory in June. This is better than 12 months last year at this time (Sect E p.8). Absorption for Used homes was 13 months of inventory in June which is even with last month. This is approximately the same as last year’s level at this time (Sect E p.8).
Average Days on Market for Sold New houses was 145 vs. 167 days last month, with Used at 145 in June compared with 131 in May (Sect A p.18).
Average sales price for Sold New homes was $240,938 vs. $226,320 last month. This is a substantial jump. (Sect A p.2)
Average sales price for Sold Used homes was $164,208 vs. $150,130 last month. (Sect A p.2)
The twelve month moving average line of prices for New homes has now flattened which is an improvement on the downward direction previously, indicating that prices are reaching some stability. Used prices seem to have increased a bit, which is encouraging. The mix of higher and lower priced homes is jumping around quite a bit so it’s hard to read too much into average prices.