The Alabama Center for Real Estate recently issued its monthly statistics report. The following article is from the Alabama News Center. You can read the entire article here.
Huntsville median home sales price up 10.4 percent in October from a year ago
Sales: According to ValleyMLS.com, Huntsville-area home sales totaled 612 units during October, up 2 percent from 600 sales in the same month a year earlier. October sales were down 6.4 percent compared to 654 sales in September. Results were 30.5 percent above the five-year October average of 469 sales. Two more resources to review: Quarterly Report and Annual Report.
For all Huntsville-area housing data, click here.
Inventory: Homes listed for sale in the Huntsville area during October totaled 1,598 units, a decrease of 24.5 percent from October 2017’s 2,116 units, and a decrease of 2.9 percent from September 2018’s 1,646 units. Huntsville also experienced a year-over-year decline in months of supply. October months of supply totaled 2.6 months, a decrease of 26 percent from October 2017’s 3.5 months of supply. However, October’s months of supply increased from September’s 2.5 months of supply.
Pricing: The Huntsville median sales price in October was $214,850, an increase of 10.4 percent from one year ago and an increase of 5.1 percent from the prior month. This direction is inconsistent with historical data (2013-17) indicating that the October median sales price on average decreases from September by 2.4 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE highly recommends consulting with a local real estate professional to discuss pricing trends, as they will vary from neighborhood to neighborhood. The homes selling in October spent an average of 50 days on the market (DOM), a decrease of 26.5 percent from 68 days in October 2017, but an increase of 4.2 percent from 48 days in September.
Forecast: October sales were 21 units, or 3.5 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 591 sales for the month, while actual sales were 612 units. ACRE forecast a total of 6,110 residential sales in the Huntsville area year-to-date, while there were 6,508 actual sales through October.
ACRE’s statewide perspective: While nationwide sales declined 2.6 percent during October, residential sales in Alabama continued to grow during the fall of 2018. Total residential sales in Alabama increased 9.1 percent year-over-year from 4,473 to 4,880 closed transactions. Year-to-date through October, statewide residential sales are up 7 percent from 48,745 one year ago to 52,163 currently. Home price appreciation in the state continued to grow as the median sales price in October increased 7.1 percent year-over-year from $146,458 to $156,872. The year-to-date median sales price is up 4.8 percent from 2017. Although nationwide inventory levels increased 2.8 percent in October, Alabama’s residential inventory decreased 9.2 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during October spent an average of 98 days on the market, an improvement of 15 days from 2017.
NAR’s national perspective: During October, nationwide inventory for existing homes increased 2.8 percent year-over-year from 1.8 million to 1.85 million residential listings. According to Lawrence Yun, chief economist for the National Association of Realtors, “As more inventory enters the market and we head into the winter season, home price growth has begun to slow more meaningfully. This allows for much more manageable, less frenzied buying conditions.”