Huntsville/North Alabama Area MLS Observations: Real Estate Market June 2014
June sales improved by 5% to $162,481,363 vs. May at $154,481,617. This was off 2% from last year’s $165,588,332. 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 were unchanged at 927 in June vs. 927 in May. This was down 4% from last year at 966. For the 1st 6 months unit sales were off 1% at 4,724 vs. last year of 4,773.
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 June, sales are down 1% from 2013.
New sales decreased at 123 this month vs. 129 last month, down 6 and compared with 168 last year.
Used sales increased to 804 this month vs. 798 last month, up 6, and compared with 798 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 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!).
May housing permits issued were 91 compared with 60 in April so it would appear that the builders are staying optimistic (chart on the web site).
Total Active listings decreased this month to 9,130 compared to last month’s 9,471, and lower than last year at this time at 9,509, 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 1,182 this month from 1,392 in May, down 210. (Sect E p.3). Active Used listings decreased to 7,948 this month from 8,079 in May, off 131 and slightly below last year’s amount at this time of 8,076. (Sect E p.3).
Average Days on Market for Sold New homes was 179 vs. 236 days last month (indicates older inventory moving), with Used at 155 in June compared with 158 in May (Sect A p.18). Average sales price for Sold New homes was $250,038 vs. $240,334 last month. (Sect A p.2) Average sales price for Sold Used homes was $163,839 vs. $154,735 last month. (Sect A p.2) The average prices seems to be have leveled out.