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    2020 Third Quarter North Alabama Market Report

     

    Continued rebounds in consumer confidence about the economy led to a strong September real estate market. Pent-up demand for housing coupled with historic low mortgage rates is driving the greater Huntsville area market.

    “Huntsville, Madison County, and our foothills of the Tennessee Valley are no longer a ‘best kept secret,’” said Amanda Howard, broker and owner of Amanda Howard Sotheby’s International Realty. “The word has been getting out, and we can see that with our growth.”

    The most recent report for the real estate market data shows an influx of pending sales and opportunities for home sellers.

    September real estate by the numbers

    • The average Days on Market for all residential property in the greater Huntsville metropolitan area was slightly over a month, at 32 days.
    • In Huntsville, 1,872 transactions were pending. 
    • Median sale prices for existing single-family homes in Huntsville reached $247,500.

    Inventory and home supply

    While the Greater Huntsville market reported 32 days on the market, specific areas recorded a lower average. Homes sold in Huntsville, averaged 17 days while pending homes averaged 18. 

    Inventory remains constrained, presenting sellers with an opportunity to maximize their value. There were 910 units available in the Huntsville area in September, 5.5 percent less than August 2020, and a 26 percent year-over-year decline. 

    Pending sales demonstrate buyer’s need for Huntsville homes and the impact of the pent-up demand for housing resulting from the shelter-in-place orders earlier in the year. The 1,872 pending sales were over three times more than the 595 pending sales in September 2019. In sum, 3,107 units were pending during September in the metropolitan area.

    Home sales and prices

    The median sales price for the metropolitan area reached $229,520 in September. When examining the Huntsville proper market area, this month’s $247,500 for single-family homes is less than the prior month, when median sales prices reached $263,640. Changes to the sample size create some statistical volatility, which is why consulting a real estate expert is advised when pricing homes. Looking at the big picture, median sale prices continue their upward trend. 

    *Graph provided by haar.realtor

    Additional submarkets

    The constrained condo and townhome supply is factoring into that market niche. There is a median selling price of $102,000, the segment averaged 9 days on the market in September. 

    New construction is also faring well. Median selling prices reached $257,645 in the greater metropolitan area, with an average 19 days on the market.

    What’s ahead for real estate

    Based on the numbers, reduced new inventory will dominate real estate market performance as we move into the year’s final months. Much of what drives interest in the area is what we have to offer.

    “Huntsville is now the fastest growing metro market in Alabama, as well as contains the highest population of highly educated individuals in one area,” Howard noted. “We are home to a large group of engineers serving with NASA since the 60’s, but has expanded much further. Huntsville is now known not only for NASA, but for the Redstone Arsenal, the FBI, MDA, AMC, aerospace firms, biotechnology, and other tech related companies that have sprung up or moved here in recent years. Our downtown is vibrant and has undergone an exciting morph by introducing more artists, festivals, breweries, and fine dining options. 

    “It’s no wonder Huntsville continues to top the list as Best Places to live, and to move to, but I don’t know how long we will be able to remain on the list for the most affordable place to live. It’s still a hot market, for those who have the ability to take advantage of it now.”

    Sellers choosing to list their homes now are seeing high buyer competition, which makes working with an experienced real estate agent key. Our team works relentlessly to understand your goals, and sell your home quickly for the most money possible. 

    Amanda Howard Sotheby’s International Realty continues to closely monitor market performance as part of our commitment to provide exceptional service to our clients. We are your local real estate resource. So always feel free to reach out to us with any of your real estate-related needs or concerns. It is our pleasure to serve you.

     

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