Huntsville/North Alabama Area MLS Observations: Residential Real Estate Market May 2011
May sales improved 38% to $126,313,089 vs. April at $91,685,077. This was 17% below last year of $152,189,799 when we were seeing the impact of the tax credit. The month to month increase is a more normal seasonal trend.The twelve month moving average line on the total dollar sales chart is still down which is a reflection of the unfavorable 2010 sales comparison due to the tax stimulus.
Total unit sales increased from 545 in April to 806 in May, an increase of 261.
New sales increased from 97 homes last month to 162 this month, an increase of 65.
Used sales increased from 448 homes last month to 644 this month, an increase of 196 (Sect E p.3).
Used inventory levels reached a new high last month at 15 months ( see the chart Sect C p.1) and remain high this month at 15 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 absorption is 9 months of inventory overall, and new homes priced under $100,000, are at 23 months of inventory. Greater than $600,000 are about two year’s worth of inventory. In the $100,000-$500,000 range inventories are more normal, ranging from 6-9 months(E-1).
Total Active listings decreased by 6% this month to 9,104 compared to last month’s 9,638, which is 5% below last year at this time at 9,554 (Sect A p.4 and Sect E p.3). Active New listings decreased from 1,575 last month to 1,321 in May, down 254. (Sect E p.3). Active Used listings decreased from 8,063 last month to 7,783 this month, down 280. This is below last year’s amount at this time of 8,079. (Sect E p.3).
Average Days on Market for Sold New homes was 184 vs. 171 days last month, with Used at 155 in May compared with 161 in April (Sect A p.18). Days on Market at or 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 $223,043 vs. $239,062 last month. (Sect A p.2)
Average sales price for Sold Used homes was $140,031 vs. $152,893 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.