Recently released market reports tell the story of an extraordinary year in our local real estate market. Few could have predicted during January 2020 the unusual circumstances of the months ahead, nor the strong recovery by year’s end.
The Huntsville metro residential real estate market finished 2020 with a total of 9,090 units sold, an 11.5% increase over 2019. That’s incredible when you think of the challenges we have faced!
The fourth quarter and year-end reports for North Alabama from the Alabama Center for Real Estate show a consistent theme: all people want to live here. The Huntsville Metro has consistently earned top marks for affordability and is highly ranked for lifestyle. We are fortunate to live in a city as dynamic as Huntsville.
Let’s look deeper at the fourth quarter and year-end performance of the Huntsville real estate market.
Huntsville Real Estate by the Numbers
- Residential real estate sales for the year rose 11.5% over 2019 by December 2020.
- In December 2020 alone, closed real estate sales were up 26.9% year-over-year.
- For the fourth quarter, Huntsville residential sales increased 22% over the prior year.
- December 2020 ended with the Huntsville metro having a 0.9 months supply of inventory, a signal of low inventory and high buyer demand.
Inventory and home supply
A reduction in available homes and new listings continues the prevalent trend of 2020. In the final quarter of the year, the average number of residential properties available was down 22.3%. In the year trends report, we averaged a 1.2 month supply.
Buyer demand has not declined. If anything, it’s increased as buyers from dense metro areas seek cities that offer more room and housing value. Huntsville’s blend of housing cost and urban amenities make it an attractive market.
As a result, the Huntsville area has a strong seller’s market. Homes averaged just 20 days on the market in the fourth quarter. For the whole year, the average number of days on the market was 35.
Our new year starts with a one month supply of available inventory.
Home sales and prices
Residential sales continue at a brisk pace regardless of low inventory. Home sales increased 22.1% compared to the total sold in Q4 2019. Overall, fourth-quarter sales were 50% above the five-year quarterly average.
Housing demand is helping sellers tap into their home’s value. Huntsville median selling prices reached $249,328 in Q4, a 4% increase from one year ago.
For the year, the median sales price in the Huntsville area rose 10.8% to $246,663. As mentioned earlier, residential sales for the whole year increased, up 11.5% year over year. December 2020 ended the year with a median price of $263,400, a rise of 11.2% from the prior month.
What’s ahead for Huntsville real estate
The year begins to continue our trend of low inventory and high buyer demand. Demand for Huntsville homes will persist in the coming months, favoring the home seller. It’s not uncommon for competitively priced properties to have multiple offers.
However, it is still an excellent time to buy in Huntsville. Low mortgage rates are expected to continue in the months ahead, and Huntsville real estate is still an affordable buy compared to other metro markets. Our five-year averages show the metro real estate market is on an upcycle, a signal homes will keep gaining in value.
It has been our honor at Amanda Howard Sotheby’s International Realty to serve you and your real estate needs. We are here as a resource to home buyers and sellers.
Let our team of experts help you navigate through your real estate transactions in Huntsville and surrounding communities.