Huntsville/North Alabama Area MLS Observations: Real Estate Market August 2012
August sales improved 12% to $157,556,492 vs. July at $140,135,627. This was 13% above last year’s $138,853,730. The twelve month moving average line on the total dollar sales chart is now heading up. This is the 1st time since 2002/2003 that we have seen August up from July.
Total unit sales improved 13% to 929 in August vs. 823 in July, an increase of 70. This was 7% favorable to last year at 872.
Note that our projection for August was 862 sales, so the actual results were 7% favorable for the month and .5% favorable 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 183 this month vs. 151 last month, increasing 30.
Used sales increased to 746 this month vs. 672 last month, increasing 74 (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 July there were 95, down from 109 in June (chart on the web site).
Total Active listings decreased this month to 8,552 compared to last month’s 9,308, which is below last year at this time at 9,531, 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 1,480 last month to 1,183 in August, down 297. (Sect E p.3). Active Used listings decreased from 7,828 last month to 7,369 this month, down 459 and below last year’s amount at this time of 8,121. (Sect E p.3).
Average Days on Market for Sold New homes was 162 vs. 155 days last month, with Used at 147 in August compared with 160 in July (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 $251,531 vs. $231,725 last month. (Sect A p.2)
Average sales price for Sold Used homes was $149,449 vs. $156,466 last month. (Sect A p.2)
The average price lines for Used homes, are once again showing some stability. New home average price seems to be showing some positive direction. Prices for individual properties remain under pressure.
By: Tom Brander 9/15/12