Huntsville August Real Estate Sales In Line With Expecations


Huntsville/North Alabama Area MLS Observations: Real Estate Market August 2013

August sales declined by 13% to $153,928,779 vs. July at $176,392,877. This was off 4% from last year’s $159,915,673. The twelve month moving average line on the total dollar sales chart is heading up. This months’ results were in-line with expectations (within 1%).

Huntsville Aug Projection

Huntsville Aug Projection

Total unit sales declined 5% to 930 in August vs. 981 in July, a decrease of 51. This was 1% slower than last year at 944. (it is worth noting that we again had a larger number of past month’s reported sales than usual, resulting in changes in historical adjustments).

Our projections for ACRE and Brander Real Estate for 2013 called for 945 sales in August with actual results 2% under that, and year to date volume is 1% lower than our projection. See here http://goo.gl/nytW8 for an article sumarizing the projections. Here is the spreadsheet with month by month projections by area http://goo.gl/GEYWa (see the tabs on the bottom).

New sales decreased to 147 this month vs. 192 last month, down 45.

Used sales decreased to 783 this month vs. 789 last month, off 6 (Sect E  p.3).

In-spite of increased sales, inventory levels remain stubbornly high. 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 $400,000 have more than two years of inventory. Looking at the overall absorption chart (Sect C p1) it appears that used home inventories (in units) are approaching the historical highs, although the months of inventory is not quite as concerning due to the increased sales level.

New home absorption is 8 months of inventory overall with last month at 11 months, and this has been climbing)(E-1). The New Home inventory level in the $300,000-$500,000 is approximately 5-6 months. (Not bad!).

There continue to be a large number of housing permits issued in Huntsville city given the market conditions. For July there were 113, up from 98 in June (chart on the web site).

Total Active listings decreased this month to 8,812 compared to last month’s 9,645, and below last year at this time at 8,949, with the reduction exaggerated due to month-end expirations. (Sect A p.4 and Sect E p.3).

Active New listings decreased from 1,491 last month to 1,158 in August, down 333. (Sect E p.3). Active Used listings decreased from 8,154 last month to 7,654 this month, down 500 and slightly below last year’s amount at this time of 7,696. (Sect E p.3).

Average Days on Market for Sold New homes was 144 vs. 162 days last month, with Used at 144 in August compared with 141 in July (Sect A p.18).

Average sales price for Sold New homes was $249,091 vs. $240,220 last month. (Sect A p.2)

Average sales price for Sold Used homes was $149,824 vs. $149,824 last month. (Sect A p.2)

The average price line for Used homes is going up. New home average prices seems to be showing positive direction as well.

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