Huntsville area home sales increase slightly year over year in July
Sales: According to ValleyMLS.com, July home sales in the Huntsville area were up 0.11% year-on-year (Y / Y) from 929 to 930 closed deals, marking 14 straight months of Y / Y gains. Following seasonal trends, sales were down 2.7% from June. Sales are now up 7.66% year-to-date. Two other resources to consult: Quarterly report and Annual Report.
For complete housing data in the Huntsville area, click here.
Inventory: Enrollments in July (647) increased 37.6% from June and were down 36.7% from a year ago. At the current selling rate, all active stocks in the market would sell in 0.7 months, down from 0.5 months in June and down from 1.1 months in July 2020. The breakeven point where buyers and sellers have roughly equal bargaining power is 6 months from delivery.
Price : The median selling price in July was $ 295,500, an increase of 18.25% from a year ago and an increase of 2.34% from June. The different sample size (number of residential sales in comparative months) may contribute to statistical volatility, including pricing. ACRE recommends consulting a local real estate professional to discuss prices, as they vary from neighborhood to neighborhood.
Homes sold in July sold for an average of 10 days on the market, 12 days faster than in July 2020.
Forecast: July sales were 19 units, or 2.13%, higher than the Alabama Center for Real Estate (ACRE) monthly forecast. ACRE forecast 911 sales for the month, while actual sales were 930 units. ACRE has forecast a total of 5,810 sales in the region since the start of the year, while there were 5,343 actual sales through July, a difference of 8.03%.
New construction: The 241 new homes sold represented 25.9% of all residential sales in the region in July. Total sales decreased 2.8% year-on-year. The median selling price in July was $ 351,983, an increase of 21.4% from June and an increase of 34.3% from a year ago.
NAR Comment: According to the National Association of Realtors (NAR), sales of existing homes nationwide increased for the second consecutive month in July, up 2% from June (seasonally adjusted annual rate). July sales increased 1.5% from a year ago. The median selling price of existing homes was $ 359,900, up 17.8% year-on-year and marking 113 consecutive months of year-over-year gains. The rise in house prices is largely the result of low housing inventories against a backdrop of considerably high demand. Supply has improved somewhat, increasing 7.3% from June 2021 and down 12% from a year ago. July’s 2.6 month supply increased slightly from June (2.5) but remains well below July 2020 (3.1).
Lawrence Yun, chief economist of NAR, said, “We are seeing stocks start to rise, which will reduce the intensity of multiple offers. Much of the growth in home sales still occurs in high-end markets, while mid-to-lower tier areas aren’t seeing as much growth as there are still too few starter homes available.
Yun added that house prices are expected to moderate in the coming months. “While we shouldn’t expect home prices to drop over the next few months, it is possible that they will level off as inventories continue to gradually improve. “
ACRE comment: Home sales in Alabama fell year over year in July, falling 1.4% (unadjusted). Sales were also down month over month, down 7.7% from June. Year-to-date, however, sales are up 17.3% from 2020. The statewide median selling price hit a new record high of $ 218,374, with rates growth in selling prices which moderated somewhat, increasing by 11% year-on-year. The state’s housing supply received a much-needed relief as listings rose 12% from June, but are still down 29.3% from a year ago . With sales slowing and inventory rising, months of supply fell from 1.2 months in June to 1.5 in July. Registrations are also expected to increase gradually over the next few months.
Click here to view the full monthly report.
The Huntsville area monthly residential report is developed as part of the Huntsville Area Real Estate Association.
Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the period July 1-31. Thus, the performance represented is historical and should not be used as an indicator of future results.