In the first quarter of 2022 we see that home prices are continuing to increase year over year; with 45% of homes in Q1 selling above average list price. As demand continues to increase the inventory of homes has stayed consistently under 1,000 for the last twenty months curating a sellers market; however, is the tide beginning to turn in our market? The Huntsville Area Association market report explores the numbers of Q1 and what that means for the sellers and buyers in our market.
- Median sales price rose to a record level of $333,000 in March 2022.
- Sales of homes priced between $500,000 and $800,000 more than doubled while the number of homes priced below $200,000 have fallen for three years.
- The consumer inflation rate jumped to 8% in March, more than four times the 2021 level.
With the demand exceeding the supply of the market, it will be interesting to see how other factors such as mortgage rates, construction costs and the overall COLI impact the buying power in the market. As inflation increases there is no doubt that the pool of pre-qualified buyers that are currently in the market will begin to decrease.
Madison County Economic Indicators:
HAAR shares below statistical information on key demographics of households in Madison county and the purchasing power of those families. In addition, these indicators feature historical and forecasted information that will also give an insight on potential buyer ability as well.
- Madison County population grew to 395,211 in 2021. (Figure 16)
- Madison County workforce reached 196,908 in March 2022. (Figure 16)
- Median Household Income in Madison County rose to $68,166 in 2021…significantly above the pre-pandemic level. (Figure 17)
- The number of household units grew to an estimated 171,542 in 2021. This represents all types of housing units comprised of nuclear families, extended families, individuals living alone as well as unrelated roommates. Housing units should generally move in relation to population trends. (Figure 18)
- Gross Domestic Product (a monetary measure of the market value of all the final goods and services produced in a specific time period) for Madison County rose 16.5% from 2019 to an estimated $26.8 billion in 2020, the most recent estimate available. (Figure 19)
To review more in depth about the 1st Quarter HAAR report click here.