September Huntsville Residential Sales Up From Last Year

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

September sales declined 6% to $129,011,381 vs. August at $137,864,729. This was 13% better than last year at $113,865,000 (as the tax incentive expired). The twelve month moving average line on the total dollar sales chart is poking up once again.Year to date sales are off 3.5% to $1,058,483,509 as compared to a year ago of $1,096,870,060. Unit sales were off 2% to 6,547 vs. 6651 a year ago. The modest drop in sales was achieved without the extraordinary tax incentives and thus reflects a more normal market.

Total unit sales decreased to 806 in September vs. 865 in August a decrease of 59.

New sales decreased to156 homes this month vs. 164 last month, a decrease of 8.

Used sales decreased from 650 homes this month to 701 last month, a  decrease of 51 (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 $400,000 have two or more years of inventory.

New home absorption is 9 months of inventory overall, (with last month at 11 months), (E-1). The New Home inventory level in the $300,000-$500,000 is approximately 6 months.

There continue to be a large number of housingpermits issued in Huntsville city, given the market conditions. August increased to 97 vs.113  in July (chart on the web site).

Total Active listings decreased this month to 8,867 compared to last month’s 9,718, which is below last year at this time at 9,907 (Sect A p.4 and Sect E p.3).  Active New listings decreased from 1,580 last month to 1,315 in September, down 265. (Sect E p.3). Active Used listings decreased from 8,138 last month to 7,552 this month, down 586 and below last year’s amount at this time of 8,370. (Sect E p.3).

Average Days on Market for Sold New homes was 152 vs.175 days last month, with Used at 152 in September compared with 155 in August (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 $231,891 vs. $222,435 last month. (Sect A p.2)

Average sales price for Sold Used homes was $142,825 vs. $144,630 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.

TWB 10/08/11


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