Huntsville Residential Real Estate Slow in January

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

January sales decreased 30% to $75,992,672 vs. December $108,056,133. This was 3% above last year of $73,664,884. The twelve month moving average line on the total dollar sales chart is pretty flat, which is a good sign for better days ahead. January is normally the lowest sales month of the year, and not very indicative of the rest of the year, so don’t try to read too much into this month’s results.

Total unit sales decreased from 642 in December to 485 in January, a decrease of 157.

New sales decreased from 171 homes last month to 97 this month, a decrease of 74.

Used sales increased from 471 homes last month to 388 this month, a decrease of 83 (Sect E  p.3).

Used inventory levels remain high at 12 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  the $700,000-$800,000 price range, 9 years of inventory. Prices continue to be pressured.

New homes are at 8 months of inventory overall, and homes priced under $100,000, are at 16 months of inventory. Greater than $500,000 are over two year’s worth of inventory. (E-1).

There continue to be a large number of housing permits issued, given the market conditions. There were 74 new single family housing permits issued in December, same as November 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.

Total Active listings decreased by11% this month to 7,657 compared to last month’s 8,754, but 7% below than last year at this time, at 8,256 (Sect A p.4 and Sect E p.3). (This will increase when reported next month). New homes sales were again greater than New home New listings. (Sect B p.1). Active New listings decreased from 1,513 last month to 1,170 in January, down 343. (Sect E p.3). Active Used listings decreased from 7,241 last month to 6,487 this month, down 754. This is below last year’s amount at this time of 6,775. (Sect E p.3).

Absorption for New homes was 8 months of inventory in January. This is better than 10 months in December and 10 months last year at this time (Sect E p.8). Absorption for Used homes was 12 months of inventory in January, which is about even with last month at 13, and even with last year’s level of 12 months (Sect E  p.8).

Average Days on Market for Sold New homes was 154 vs. 152 days last month, with Used at 168 in January compared with 160 in December (Sect A p.18).

Average sales price for Sold New homes was $207,709 vs. $224,229 last month. (Sect A p.2)

Average sales price for Sold Used homes was $143,930 vs. $148,011 last month. (Sect A p.2)

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 2/13/11


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