Huntsville Real Estate Market Strengthens in April

Huntsville/North Alabama Area MLS Observations: Real Estate Market April 2014

April sales improved by 5% to $128,966,904 vs. March at $123,311,921. This was up 7% from last year’s $120,599,535. This is a better result than we saw last month hopefully pointing to more positive comparisons as the season progresses to the stronger months. The twelve month moving average line on the total dollar sales chart is roughly flat. Total unit sales improved  10% to 834 in April vs. 763 in March, an increase of 73. This was 6% better than last year at 799.

The way  ACRE and Brander Real Estate projections for 2014 are compiled has changed. This year we are using the ACRE data which differs slightly from the data in this report. I am now dependent on ACRE for the timing of data availability (for the projections only) and report release. Our projections for the Huntsville market for 2014 are for an increase of 0.9% over the 2013 level, essentially flat with 2013.

New sales remained at 143 this month vs. 143 last month, and compared with 130 last year.

Used sales increased to 691 this month vs. 620 last month, up 71, and compared with 669 last year (Sect E  p.3).

Inventory levels remain stubbornly high. Used inventory levels remain high this monthat11 months (see the chart Sect C p.1), with the situation continuing to be particularly challenged in the higher price ranges. Used homes over $500,000 have more than two years of inventory. New home absorption is 8 months of inventory overall, and this has been climbing with 10 months last month. (E-1). The New Home inventory level in the $300,000-$500,000 is approximately 5-6 months (Not bad!).

March housing permits issued were 91 compared with 60 in February (chart on the web site).

Total Active listings decreased this month to 8,864 compared to last month’s 9,027, and lower than last year at this time at 9,290, 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 1,191 this month from 1,406 in March, down 215. (Sect E p.3). Active Used listings increased to 7,673 this month from 7,621 in March, up 52 and slightly below last year’s amount at this time of 7,796. (Sect E p.3).

Average Days on Market for Sold New homes was 181 vs. 179 days last month, with Used at 165 in April compared with 163 in March (Sect A p.18). Average sales price for Sold New homes was $229,274 vs. $240,802 last month. (Sect A p.2) Average sales price for Sold Used homes was $139,191 vs. $143,350 last month. (Sect A p.2) The average price line for Used homes is headed modestly down. The New home average price seems to be showing positive direction.

TWB 5/11/14


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