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.
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.