In the fourth quarter of 2022, demand for housing in the Madison County area remained strong. Limited availability of homes continued through the first half of the year but improved in the second half. Prices remained elevated while days on market stayed well below one-month. Seller expectations and buyer demands became more aligned which helped in rebalancing the overall housing market in Madison County.
Home prices moderated in Q4 with the median price of $329,900, down from Q3 level of $336,000. Inventory of homes increased significantly during the quarter with the number of homes remaining above the number of units sold. The percentage of homes in the lower price ranges was smaller for both the number sold as well as the number available in the inventory of homes. The greatest number of listed homes at year-end (459) was in the $350-$500,000 range.
The days-on-market average for Q4 was 17, and rebounded from the record low of 10 days in 2021 Q4. The number of newly constructed homes sold in Q4 2022 was 564. That was slightly lower than the Q3 level of 649.The inventory of newly constructed homes in December was 858. That was more than double the number of 356 at the end of 2021. Changes in any number of factors such as mortgage rates, construction materials cost, availability of rental properties, etc., could alter the momentum of the residential real estate market in Madison and surrounding counties.
The strength of the local economy continues to attract new residents as well as provide new opportunities for existing residents which keeps housing demand strong even with the challenges of inflation, workforce attraction, and recovery from the pandemic.
Q4 Insights:
* The Madison County residential real estate market sales moderated in Q4.
* Number of homes available at the end of Q4 rose 150% above Q4 2021.
* Median sales price Q4 rose to $329,900, an increase of 8% above Q4 2021 level of $305,000.
* Number homes sold was 1,701.That is 30% below the Q4 2021 total of 2,430.
