Huntsville/North Alabama Area MLS Observations: Real Estate Market July 2012
July sales declined 8% to $138,500,377 vs. June at $149,748,736 This was 1% below last year’s $140,093,310. The twelve month moving average line on the total dollar sales chart is now flat at the end.
Total unit sales decreased 8% to 816 in July vs. 886 in June, a decrease of 70. This was 3% unfavorable to last year at 839.
Note that our projection for July was 892 so the actual results were 9% unfavorable for the month and .9% 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 better with 150 this month vs. 146 last month, increasing 4.
Used sales decreased to 728 this month vs. 737 last month, decreasing 9 (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 $200,000 are still over 12 months of inventory and over $500,000 have about three 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 6 months (Not bad!).
There continues to be a large number of housing permits issued in Huntsville city given the market conditions. For June there were 109 , down from 115 in May (chart on the web site).
Total Active listings decreased this month to 8,640 compared to last month’s 8,322, which is below last year at this time at 9,627, with the reduction exaggerated due to month-end expirations.
(Sect A p.4 and Sect E p.3). The reduction in inventory is a good thing. But we must note that the inventory level has remained constant over the last few months, stopping the decline.
Active New listings decreased from 1,453 last month to 1,199 in July, down 254. (Sect E p.3). Active Used listings decreased from 7,869 last month to 7,441 this month, down 428 and below last year’s amount at this time of 9,627. (Sect E p.3).
Average Days on Market for Sold New homes was 155 vs. 157 days last month, with Used at 160 in July compared with 155 in June (Sect A p.18). 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 $232,377 vs. $238,479 last month. (Sect A p.2)
Average sales price for Sold Used homes was $155,621 vs. $155,312 last month. (Sect A p.2)
The average price lines for Used homes, is once again showing some stability. New homes average price seems to be showing some positive direction. Prices for individual properties remain under pressure.