Huntsville/North Alabama Area MLS Observations: Residential Real Estate Market April 2011
April sales fell 20% to $86,520,883 vs. March at $107,847,402. This was 38% below last year of $138,924,170. Keep in mind that last year we were seeing the impact of the tax credit. The month to month decrease was quite disappointing given the normally strong seasonal trend.The twelve month moving average line on the total dollar sales chart has taken a decided turn down which is a discouraging sign for the future.
Total unit sales decreased from 683 in March to 530 in April, a decrease of 153.
New sales decreased from 129 homes last month to 95 this month, a decrease of 34.
Used sales decreased from 554 homes last month to 435 this month, a decrease of 119 (Sect E p.3).
Used inventory levels remain high at 14 months with the situation particularly challenged in the higher price ranges. Used homes over $100,000 are still over a year of inventory.
New homes are at 9 months of inventory overall, and new homes priced under $100,000, are at 21 months of inventory. Greater than $500,000 are about two year’s worth of inventory. In the $100,000-$500,000 range inventories are fairly normal, ranging from 5-9 months(E-1).
There continue to be a large number of housing permits issued in Huntsville city, given the market conditions. March showed 103 vs. 86 in February.
Total Active listings decreased by 4% this month to 9,020 compared to last month’s 9,444, which is 3% below last year at this time at 9,326 (Sect A p.4 and Sect E p.3). New Homes New Listings are more than 3 times New Home Sales. (Sect B p.1). Active New listings decreased from 1,502 last month to 1,339 in April, down 163. (Sect E p.3). Active Used listings decreased from 7,942 last month to 7,681 this month, down 261. This is below last year’s amount at this time of 7,872. (Sect E p.3). We have not yet seen the expected surge in Spring listings.
Absorption for New homes was 9 months of inventory in April. This is about the same as 10 months in March and 9 months last year at this time (Sect E p.8). Absorption for Used homes was 14 months of inventory in April, which is even with last month at 15, and last year at 13 months (Sect E p.8).
Average Days on Market for Sold New homes was 171 vs. 183 days last month, with Used at 161 in April compared with 164 in March (Sect A p.18). Days on Market below 6 months, while the inventory numbers are higher, indicates well priced homes are selling. Sellers, including bank owners, are not adjusting to the new price reality which contributes to inventory build-up.
Average sales price for Sold New homes was $239,413 vs. $240,065 last month. (Sect A p.2)
Average sales price for Sold Used homes was $146,613 vs. $138,771 last month. (Sect A p.2)
The Average price lines have had a generally upwards slope for a while now but that is mostly due to a changing mix of home sales with some more higher priced homes beginning to move as a proportion of the total market; prices for individual properties remain under pressure.