Huntsville/North Alabama Area MLS Observations: Real Estate Market October 2012
October sales improved by 5% to $125,715,005 vs. September at $119,890,035. This was 22% above last year’s $102,760,335. The twelve month moving average line on the total dollar sales chart is heading up.
Total unit sales improved 5% to 779 in October vs. 739 in September, a decrease of 40. This was 19% favorable to last year at 657.
Note that our projection for October was 743 sales, so the actual results were 5% favorable for the month and .7%(that is less than 1%) 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 declined with 149 this month vs. 164 last month, decreasing 15.
Used sales increased to 630 this month vs. 575 last month, increasing 55 (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 9 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 September there were 99 (census estimate), up from 118 in August (chart on the web site).
Total Active listings decreased this month to 8,461 compared to last month’s 9,193, which is below last year at this time at 9,171, 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 1,472 last month to 1,261 in October, down 211. (Sect E p.3). Active Used listings decreased from 7,721 last month to 7,200 this month, down 521 and below last year’s amount at this time of 7,800. (Sect E p.3).
Average Days on Market for Sold New homes was 166 vs. 191 days last month, with Used at 151 in October compared with 167 in September (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 $253,355 vs. $223,886 last month. (Sect A p.2)
Average sales price for Sold Used homes was $139,627 vs. $144,648 last month. (Sect A p.2)
The average price line for Used homes is once again showing some stability. New home average price seems to be showing some positive direction. Prices for individual properties remain under pressure.