Huntsville/North Alabama Area MLS Observations: Residential Real Estate Market August 2011
August sales declined 2% to $136,819,154 vs. July at $139,485,960. This was 10% better than last year at $124,342,982 (just as the tax incentive expired). The twelve month moving average line on the total dollar sales chart is poking up once again.
Total unit sales increased from 834 in July to 854 in August, an increase of 20.
New sales decreased from 174 homes last month to 164 this month, a decrease of 10.
Used sales increased from 660 homes last month to 690 this month, an increase of 30 (Sect E p.3).
Used inventory levels remain high this month at 14 months (see the chart Sect C p.1), with the situation particularly challenged in the higher price ranges. Used homes over $100,000 are still over a year of inventory and over $300,000 have two or more years of inventory.
New home absorption is 9 months of inventory overall, (with last month at 10 months), (E-1). Interestingly, the New Home inventory level in the $300,000-$500,000 is slightly under 6 months.
Total Active listings decreased this month to 9,069 compared to last month’s 9,785, which is below last year at this time at 9,770 (Sect A p.4 and Sect E p.3). Active New listings decreased from 1,521 last month to 1,312 in August, down 209. (Sect E p.3). Active Used listings decreased from 8,264 last month to 7,757 this month, down 507 and below last year’s amount at this time of 8,322. (Sect E p.3).
Average Days on Market for Sold New homes was 175 vs.181 days last month, with Used at 155 in August compared with 156 in July (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 $222,435 vs. $229,268 last month. (Sect A p.2)
Average sales price for Sold Used homes was $145,420 vs. $150,899 last month. (Sect A p.2)
The Average price lines which were on a upwards slope for a while, 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.