Huntsville/North Alabama Area MLS Observations: Real Estate Market May 2014
May sales improved by 13% to $147,870,910 vs. April at $131,091,107. This was off 6% from last year’s $156,792,821. This is a disappointing loss of upward momentum. The twelve month moving average line on the total dollar sales chart is roughly flat. Total unit sales improved 4% to 882 in May vs. 851 in April, an increase of 31. This was down 6% from last year at 939.
This year we are using the ACRE data for forecasting which differs slightly from the data in this report. Our projections for the Huntsville market for 2014 are for an increase of 0.9% over the 2013 level, essentially flat with 2013. As of April, sales are down 0.2% from 2013.
New sales decreased at 114 this month vs. 147 last month, down 33 and compared with 130 last year.
Used sales increased to 768 this month vs. 704 last month, up 64, and compared with 809 last year (Sect E p.3).
Inventory levels remain stubbornly high. Used inventory levels remain high this monthat12 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!).
April housing permits issued were 60 compared with 91 in March so it would appear that the builders are trimming their sails (chart on the web site).
Total Active listings decreased this month to 8,925 compared to last month’s 9,450, and lower than last year at this time at 9,329, 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 1,160 this month from 1,425 in April, down 265. (Sect E p.3). Active Used listings increased to 7,765 this month from 8,025 in April, up 260 and slightly below last year’s amount at this time of 7,870. (Sect E p.3).
Average Days on Market for Sold New homes was 236 vs. 181 days last month (indicates older inventory moving), with Used at 158 in May compared with 165 in April (Sect A p.18). Average sales price for Sold New homes was $243,435 vs. $228,366 last month. (Sect A p.2) Average sales price for Sold Used homes was $156,405 vs. $138,525 last month. (Sect A p.2) The average prices seems to be have leveled out.