February Real Estate Sales Soft In Huntsville

Huntsville/North Alabama Area MLS Observations: Real Estate Market February 2012

February sales improved 10% to $87,702,197 vs. January at $80,004,946. This was 6% below last year’s $93,076,486. The twelve month moving average line on the total dollar sales chart is flat.

Total unit sales increased to 610 in February vs. 536 in January, an increase of 74. This was favorable to last year at 585.

Note that our projection for February was 607 so the actual results were .5% favorable. This will probably increase as late sales are reported. We will be revising the full year projections now that the final un-employment statistics for January are available, but I did not want to delay this report. But based on the close results I think we are onto something!

New sales remained at 110 this month vs.110 last month.

Used sales increased to 500 this month vs. 426 last month, increasing 74 (Sect E p.3).

Used inventory levels remain high this month at 12 months (see the chart Sect C p.1), with the situation particularly challenged in the higher price ranges. Used homes over $100,000 are still over 12 months of inventory and over $400,000 have two or more years of inventory.

New home absorption is 8 months of inventory overall, (with last month at 10 months), (E-1). The New Home inventory level in the $300,000-$400,000 is approximately 5 months (not bad).

There continue to be a large number of housingpermits issued in Huntsville city, given the market conditions. January increased to 74 vs. 56 in December (chart on the web site).

Total Active listings decreased this month to 7,959 compared to last month’s 8,512, which is below last year at this time at 8,958 with the reduction exaggerated due to month-end expirations. (Sect A p.4 and Sect E p.3). The reduction, even if due to discouraged sellers, is a good thing.

Active New listings decreased from 1,479 last month to 1,216 in February, down 263. (Sect E p.3). Active Used listings decreased from 7,033 last month to 6,734 this month, down 299 and below last year’s amount at this time of 7,619. (Sect E p.3)

Average Days on Market for Sold New homes was 186 vs.163 days last month, with Used at 166 in February compared with 167 in January (Sect A p.18). Days on Market at or below 6 months, while the inventory numbers are way higher, indicates well priced homes are selling. Sellers, including bank owners, who do not adjust to the new price reality contribute to the buildup of inventory.

Average sales price for Sold New homes was $208,768 vs. $229,095 last month. (Sect A p.2)

Average sales price for Sold Used homes was $129,475 vs. $128,649 last month. (Sect A p.2)

The Average price lines for Used homes, which was on a upwards slope for a while, is now on a downward trend. New homes average price seems to be showing some positive direction. Prices for individual properties remain under pressure.

TWB 3/18/12

Posted in Absorption, Building Permit, Forecast, Home values, Huntsville, Monthly comments, North Alabama, real estate | Tagged , , , , , | Leave a reply

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