Huntsville/North Alabama Area MLS Observations: Real Estate Market November 2011
November sales declined 3% to $98,612,691 vs. October at $101,712,163. This was 1% better than last year at $97,179,181 (even with the tax incentive expiration). The twelve month moving average line on the total dollar sales chart is still poking up a bit.
Total unit sales decreased to 639 in November vs. 651 in October a decrease of 12.
New sales increased to138 homes this month vs. 125 last month, an increase of 13.
Used sales decreased to 501 homes this month vs. 526 last month, a decrease of 25 (Sect E p.3).
Used inventory levels remain high this month at 13 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 13 months 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 (not bad).
There continue to be a large number ofhousingpermits issued in Huntsville city, given the market conditions. October decreased to 79 (imputed by the Census dept) vs. 87 in September (chart on the web site).
Total Active listings decreased this month to 8,510 compared to last month’s 9,338, which is below last year at this time at 9,329 (Sect A p.4 and Sect E p.3). Active New listings decreased from 1,529 last month to 1,285 in November, down 244. (Sect E p.3). Active Used listings decreased from 7,809 last month to 7,225 this month, down 584 and below last year’s amount at this time of 7,829. (Sect E p.3).
Average Days on Market for Sold New homes was 142 vs.160 days last month, with Used at 149 in November compared with 164 in October (Sect A p.18). Days on Market at or below 6 months, while the inventory numbers are way 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 $212,256 vs. $231,167 last month. (Sect A p.2)
Average sales price for Sold Used homes was $138,366 vs. $138,434 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. Prices for individual properties remain under pressure.
We have been doing some work to see how well we can predict overall residential sales as much as a year or two in advance and have some very encouraging results. Call me if you would like to discuss.