Sales: According to ValleyMLS.com, August home sales in the Huntsville area increased 5.3% year-over-year (Y/Y) from 818 to 861 closed transactions, marking 15 consecutive months of Y/Y gains. Following seasonal trends, sales decreased 7.4% from July. Sales are now up 7.3% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all Huntsville-area housing data, click here.
Inventory: August listings (662) increased 2.3% from July and declined 31.3% from one year ago. At the current sales pace, all the active inventory on the market would sell in 0.8 months, up from 0.7 month in July and down from 1.2 months in August 2020. The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply.
Pricing: The median sales price in August was $295,000, an increase of 11.9% from one year ago and a decrease of 0.2% from July. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Homes sold in August averaged 13 days on the market (DOM), 5 days faster than August 2020.
Forecast: August sales were 60 units, or 6.5%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 921 sales for the month, while actual sales were 861 units. ACRE forecast a total of 6,731 sales in the area year-to-date, while there were 6,204 actual sales through August, a difference of 7.8%.
New Construction: The 225 new homes sold represent 26.1% of all residential sales in the area in August. Total sales increased 1.4% year-over-year. The median sales price in August was $308,513, a decrease of 12.4% from July and an increase of 16.5% from one year ago.
NAR Commentary: According to the National Association of Realtors (NAR), existing home sales nationwide decreased in August, down 2% from July (seasonally adjusted annual rate). August sales were also down 1.5% from one year ago. The median sales price for existing homes was $356,700, rising 14.9% year-over-year and marking 114 consecutive months of year-over-year gains. Rising home prices are largely a result of low housing inventory amid sustained demand. Supply retreated in August, down 1.5% from July 2021 and is down 13.4% from one year ago. August’s 2.6 months of supply was unchanged from July and down 13.3% from 3.0 in August 2020.
Lawrence Yun, chief economist for NAR said, “Sales slipped a bit in August as prices rose nationwide. Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory.”
Yun also discussed current market conditions and home prices saying, “High home prices make for an unbalanced market, but prices would normalize with more supply.”
ACRE Commentary: Home sales in Alabama increased year-over-year (Y/Y) in August, rising 3.9% (seasonally unadjusted). Sales decreased 5.9% month-over-month, following historical trends as a small decline is expected from July to August. Sales are up 15.3% year-to-date, with another record year for home sales likely in 2021.
Home price growth is moderating somewhat with the statewide median sales price gaining 6.6% Y/Y in August, down from an average of 12.3% Y/Y during January-July 2021. The state’s housing supply increased slightly (0.2%) from July, but listings are down 24.7% from one year ago. With sustained demand and rising inventory, months of supply increased from 1.5 in July to 1.6 in August. Listings are also expected to gradually increase in the coming months with higher home prices bringing more potential sellers to the market.
Click here to view the entire monthly report.
The Huntsville Area Residential Monthly Report is developed in connection with the Huntsville Area Association of Realtors.
Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period August 1 – 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.