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    2020 Second Quarter North Alabama Market Report

    Market volatility and uncertainty caused by COVID-19 persisted through the second quarter of 2020, but overall the economy started showing signs of recovery. Reopenings caused consumer sentiment to rise, but progress has slowed as reported cases increase.

    As far as the real estate market is concerned, housing has fared better than other economic sectors. Sustained record-low mortgage rates and pent-up demand have sheltered the industry from initial recession concerns. In studying the released report, we see strong performance despite the outside economic challenges. Let’s take a look at how the Huntsville real estate market fared in the second quarter.

    Huntsville real estate by the numbers

    A few key figures stick out about the second quarter 2020’s performance:

    • Available inventory is still low, but it did increase by 295 units from the first three months of 2020.
    • Our days-on-market reached a record low of 29 days.
    • Median sale prices have increased every month since the year’s start and jumped by 12 % to $248,680.
    • Total year-to-date sales activity matched the prior year’s to-date activity.

    Quarter 2 breakdown

    Inventory and home supply

    Activity dropped in the initial weeks of the pandemic and the shelter-at-home orders. The second quarter numbers show the rebound. While the current inventory was 24% lower than Q2 2019, it rose 26% from the first quarter 2020. According to market reports, the average number of homes available month-to-month rose for the first time since 2017.

    Inventory has continued to decline, as has pending sales. The supply of homes declined across all price brands compared to Q2 2019, averaging 1.4 months. 

    Demand did not decline. The Huntsville real estate market reached a record low 29 days-on-market in the second quarter, a 51% year-over-year change. 

    Home sales and prices

    Looking at home sales, the numbers show remarkable performance despite the overarching factors. Total units sold for the year was 2,233, just shy of the 2,238 sold in the same period the prior year. 

    Home sales achieved record levels in the second quarter. April, May, and June sales were above their five-year averages. Notably, June sales were 10% above its five-year average.

    What impact is sustained demand and low inventory having on sale prices? Median prices are rising faster than other costs in the local economy based on the inflation rate for all goods. In the second quarter 2020, the median sales price was 12% higher than Q2 2019. Median prices have been on the up since 2017, and have steadily risen since the year’s start.

    What’s ahead in Q3

    This report shows the North Alabama Real Estate market is persevering through the coronavirus crisis. 

    Looking forward, the early numbers suggest the inventory will continue to decline while the number of sales increases. Pending sales for Q2 2020 were less than the prior year and hint at a possible slowdown in sales activity. Fewer listings will naturally impact sales volume. 

    Keep in mind there will be significant demand for homes moving forward. Real estate traditionally has less volatility than the stock market, and low mortgage rates are encouraging people to buy. If you’re considering selling your home, now is an ideal time to work with our agents. 

    Obviously challenges do remain ahead for all of us, and we must remain flexible. We at Amanda Howard Sotheby’s International Realty have been monitoring the market changes weekly. We are continuously adapting to meet the market and customer needs. We have guidelines and standards in place for our agents and customers to continue with business in a safe manner aligned with CDC guidelines. Our innovative brokerage embraces the latest technology, and we’ve seen an increase in virtual tour and 3D tour activity on our websites. 

    As always, please reach out to us with any of your real estate-related needs or concerns. We are here to be a resource to you.

     

     

     

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