Huntsville, North Alabama December Real Estate Up 7% From November


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

December sales improved by 7% to $116,699,993 vs. November at $109,284,134. This was off 1% from last year’s $118,295,733. The twelve month moving average line on the total dollar sales chart has turned flat and slightly down. This month’s results were somewhat lower than expectations ( but, within 4%). Total unit sales declined 4% to 677 in December vs. 704 in November, a decrease of 27. This was about even with last year at 673.

Total $

%chg

Total Units

%chg

New Units

%chg

Used units

%chg

2012

1,499,410,113

9,196

1,738

7,458

2013

1,596,928,627

7%

9,722

6%

1,729

-1%

7,993

7%

Projections from  ACRE and Brander Real Estate for 2013 called for 708 sales in December with actual results 4% under that, and year to date volume at 1% lower than projection. Click here http://goo.gl/nytW8 for an article summarizing our projections. Here is the spreadsheet with month by month projections by area:  http://goo.gl/GEYWa (see the tabs on the bottom). When late sales are reported next month we will probably end up within ½% or so. My preliminary work on next year’s projections is, as yet, indeterminate.

Huntsville Projection to Actual

Huntsville Projection to Actual

New sales increased to 133 this month vs. 122 last month, off 11.

Used sales decreased to 544 this month vs. 582 last month, off 38 (Sect E  p.3).

Inventory levels remain stubbornly high. Used inventory levels remain high this month at 10 months (see the chart Sect C p.1), with the situation continuing to be 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 historical highs. New home absorption is 9 months of inventory overall, 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!). August housing permits issued were 48 in November compared with 85 in October (chart on the web site). This is the lowest level of starts in some time.

Total Active listings decreased this month to 8,266 compared to last month’s 9,111, and about even with last year at this time at 8,263, with the reduction in the current month exaggerated due to month-end expirations. (Sect A p.4 and Sect E p.3).  Active New listings decreased to 1,348 this month from 1,535 in November, down 187. (Sect E p.3). Active Used listings decreased to 6,918 this month from 7,576 in November, down 658 and slightly above last year’s amount at this time of 6,887. (Sect E p.3).

Average Days on Market for Sold New homes was 159 vs. 157 days last month, with Used at 157 in December compared with 151 in November (Sect A p.18). Average sales price for Sold New homes was $253,017 vs. $250,445 last month. (Sect A p.2) Average sales price for Sold Used homes was $152,663 vs. $135,275 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.

TWB 1/11/14

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