Huntsville Real Estate Market Remains Slow in September


 

Huntsville is the largest city in North Alabama

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Huntsville/North Alabama Area MLS Observations Huntsville, Alabama Residential Real Estate Market September 2010: 

September dollar sales decreased 10% from August’s weak result. September sales were $111,365,113 vs. August $123,108,682. This was 11% below last year of $125,677,932. This is disappointing as we are now entering the seasonally weaker part of the year. The twelve month moving average line on the total dollar sales chart once again has an ugly downward slant at the end.

Total unit sales decreased from 736 in August to 651 in September, a decrease of 85.
New sales increased from 139 homes last month to 156 this month, a increase of 17.
Used sales decreased from 597 homes last month to 495 this month, a increase of 102 (Sect E  p.3).

Used inventory levels remain high 14 months with the situation particularly challenged in the higher price ranges. Used homes over $100,000 are now over a year of inventory, and in $700,000-$800,000 price range close to 7 years of inventory. Prices continue to be pressured.

New homes are at 9 months of inventory overall, and homes priced under $100,000, are at 11 months of inventory. Greater than $500,000 are at over two year’s worth of inventory. (E-1).

There seem to be a large number of housing permits issued, given the market conditions. There were 98 new single family housing permits issued in August, up from 80 in June in Huntsville City, according to the Census Department. This permit level is way above the sales level for the comparable area. New home inventory remains high and climbing.

Total Active listings decreased by 4% this month to 9,565 compared to last months’ 9,936, but 10% greater than last year at this time, at 8,687 (Sect A p.4 and Sect E p.3). (This will increase when reported next month.) New homes New listings are once again about 2 times the rate of sales, which combined with the high number of building permits does not look encouraging. (Sect B p.1). Active New listings decreased from 1,570 last month to 1,464 in September, down 106. (Sect E p.3). Active Used listings decreased from 8,366 last month to 8,101 this month, down 265. This is above last year’s level at this time (7,067) (Sect E p.3).

Absorption for New homes was at 9 months of inventory in September. This is better than 11months last year at this time (Sect E p.8). Absorption for Used homes was 14 months of inventory in September which is even with last month. This is slightly worse than last year’s level of 13 months (Sect E  p.8).

Average Days on Market for Sold New homes was 151 vs. 168 days last month, with Used at 136 in September compared with 137 in August (Sect A p.18).
Average sales price for Sold New homes was $228,053 vs. $218,913 last month. (Sect A p.2)
Average sales price for Sold Used homes was $153,109 vs. $155,242 last month. (Sect A p.2)

Until we see some signs of normalcy return in the wake of the tax incentive expiration, it is difficult to predict future results. 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.

TWB 10/11/10

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