The Huntsville area’s median home sales price in March was $242,000, an increase of 15.8% from the same month in 2019. (iStock)
Sales: March home sales in the Huntsville area increased 16.5% year-over-year from 569 to 663 closed transactions. Following seasonal trends, sales increased 19.7% from February. Sales are up 11.8% year-to-date, but are likely to moderate amid the COVID-19 pandemic and resulting decline in economic activity. Two more resources to review: Quarterly Report and Annual Report.
Inventory: Homes listed for sale decreased 24.2% from 1,157 to 877 listings. Months of supply dropped from 2 months to 1.3, reflecting a seller’s market in the area.
Pricing: The median sales price in March was $242,000, an increase of 15.8% from one year ago and an increase of 5.3% from the prior month. This indicator can fluctuate from month to month because of the sampling size of data and seasonal buying patterns. Homes sold in March averaged 36 days on the market
(DOM), selling 19 days faster than in March 2019.
Forecast: March sales were 35 units, or 5%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 698 sales for the month, while actual sales were 663 units. ACRE forecast a total of 1,798 residential sales year-to-date, while there were 1,801 actual sales through March, a difference of 0.3%.
ACRE commentary: In Alabama, March sales results were quite surprising as they increased 6.6% year-over-year. The concern, however, is that many of the transactions closing in March were under contract prior to the pandemic. Sales are now up 11.1% year-to-date (YTD), but the first quarter of 2019 was relatively weak in terms of closed sales activity, suggesting YTD growth rates should not be overemphasized. The real wild card is April and May sales as people adjust to selling a home in the COVID era.
Home price appreciation continued as the median sales price increased 7.7% year-over-year, marking 29 consecutive months of gains. While properties listed for sale nationwide decreased 10.2% yearover-year, Alabama’s residential listings continued to tighten, decreasing 13%. Low inventory levels were a significant factor contributing to rising sales prices throughout 2019 and continued into March. With fewer listings, it is not surprising to see homes selling at a slightly quicker pace. Homes selling in Alabama during March spent an average of 88 days on the market, 10 days faster than one year ago.