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).
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