Huntsville/North Alabama Area MLS Observations: Real Estate Market March 2012
March sales improved 21% to $107,628,592 vs. February at $88,706,797 This was 1% below last year’s $109,030,802. The twelve month moving average line on the total dollar sales chart is flat.
Total unit sales increased 15% to 710 in March vs. 617 in February, an increase of 93. This was 3% favorable to last year at 690.
Note that our projection for March was 763, so the actual results were 7% unfavorable and 4% unfavorable year to date. (Full spreadsheets and projections (a joint project between ACRE and Brander Real Estate) are available at http://goo.gl/WFHrO) .
New sales were up slightly to 114 this month vs.112 last month.
Used sales increased to 596 this month vs. 505 last month, increasing 91 (Sect E p.3).
Used inventory levels remain high this month at 12 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 12 months of inventory and over $400,000 have about two or more years of inventory.
New home absorption is 8 months of inventory overall, (with last month at 10 months) (E-1). The New Home inventory level in the $300,000-$400,000 is approximately 5 months (not bad).
There continue to be a large number of housing permits issued in Huntsville city, given the market conditions. February decreased to 65 vs. 74 in January (chart on the web site).
Total Active listings decreased this month to 8,204 compared to last month’s 8,642, which is below last year at this time at 9,188, with the reduction exaggerated due to month-end expirations.
(Sect A p.4 and Sect E p.3). The reduction, even if due to discouraged sellers, is a good thing.
Active New listings decreased from 1,466 last month to 1,217 in March, down 249. (Sect E p.3). Active Used listings decreased from 7,176 last month to 6,987 this month, down 189 and below last year’s amount at this time of 7,865. (Sect E p.3).
Average Days on Market for Sold New homes was 167 vs.186 days last month, with Used at 165 in March compared with 166 in February (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, who do not adjust to the new price reality contribute to the buildup of inventory.
Average sales price for Sold New homes was $235,115 vs. $207,692 last month. (Sect A p.2)
Average sales price for Sold Used homes was $135,613 vs. $129,595 last month. (Sect A p.2)
The Average price lines for Used homes, which was on an upwards slope for a while, is now on a downward trend. New homes average price seems to be showing some positive direction. Prices for individual properties remain under pressure.