Huntsville July Real Estate Sales Still Slow

Huntsville/North Alabama Area MLS Observations: Residential Real Estate Market July 2011

July sales declined 7% to $138,706,404 vs. June at $148,681,729. This was 17% better than last year of $118,171,348. 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 decreased from 892 in June to 828 in July, a decrease of 64.

New sales decreased from 186 homes last month to 172 this month, a decrease of 14.

Used sales decreased from 706 homes last month to 656 this month, a decrease of 50 (Sect E  p.3).

Used inventory levels reached a new high last month at 16 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, (with a new high last month of 10 months), and New homes priced under $100,000, are at 13 months of inventory. Greater than $600,000 are two years or more worth of inventory. In the $100,000-$500,000 range inventories are more normal, ranging from 6-9 months(E-1).

There continue to be a large number ofhousingpermits issued in Huntsville city, given the market conditions. June showed 93 vs.98 in May.

Total Active listings decreased this month to 9,137 compared to last month’s 9,806, which is below last year at this time at 9,831 (Sect A p.4 and Sect E p.3).  Active New listings decreased from 1,496 last month to 1,271 in July, down 225. (Sect E p.3). Active Used listings decreased from 8,310 last month to 7,866 this month, down 444 and below last year’s amount at this time of 8,375. (Sect E p.3).

Average Days on Market for Sold New homes was 181 vs. 176 days last month, with Used at 156 in July compared with 156 in June (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 $229,902 vs. $240,246 last month. (Sect A p.2)

Average sales price for Sold Used homes was $151,164 vs. $147,247 last month. (Sect A p.2)

The Average price lines which were on a upwards slope for a while now, turned down particularly for Used Homes. The fluctuation 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

TWB 8/13/11


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