In the dynamic landscape of Huntsville’s real estate market, the month of September witnessed a total of 622 homes changing hands. While this figure represents a decrease from the 753 homes sold in 2022, the market remains vibrant and resilient. The average sales price stood at $370,000, showing a marginal dip of $1,000 compared to the same period last year when it was $371,000.
One notable trend is the increase in homes on the market, which numbered 1,807, up from 1,496 in 2022. However, the average days on the market also saw an increase, reaching 29 days, compared to 14 days in 2022. The number of pending sales stood at 918, indicating ongoing interest and activity in the real estate market.
Nationally, the real estate landscape has faced challenges, with existing home sales hitting a 7-month low. Factors such as surging borrowing costs, rising sales prices, and limited inventory have created a scenario where many potential buyers find themselves sidelined. The National Association of REALTORS® (NAR) reports a 0.7% month-over-month decline in existing-home sales, with a substantial 15.3% year-over-year drop.
Breaking down the local market further, new listings decreased by 11.0% for single-family homes and 25.6% for townhouse/condo homes. Pending sales mirrored this trend, decreasing by 11.3% for single-family homes and 23.7% for townhouse/condo homes. Inventory, however, increased by 7.9% for single-family homes, but it decreased by 23.2% for townhouse/condo homes.
Median sales prices followed distinct trajectories, decreasing by 1.6% to $305,000 for single-family homes while increasing by 7.6% to $261,450 for townhouse/condo homes. Days on market saw an increase of 57.9% for single-family homes and 35.0% for townhouse/condo homes.
Looking at the national scene, the persistently low inventory continues to influence pricing dynamics. Despite a softening of home sales on a broader scale, the lack of available homes has kept the market highly competitive. Bidding wars are not uncommon, leading to homes selling above asking prices in certain areas.
As we entered September, only 1.1 million units were available for sale, reflecting a 0.9% decrease from the previous month and a significant 14.1% decrease from the same period last year. This scarcity has driven the U.S. median existing-home sales price to $407,100, marking a 3.9% year-over-year increase and the third consecutive month that the median sales price has exceeded $400,000, according to NAR.
In this complex and ever-evolving real estate landscape, Huntsville-Madison County continues to demonstrate resilience and remains a market to watch for both buyers and sellers. As we move into the fall season, the interplay of market forces will undoubtedly shape the trajectory of real estate in the Rocket City.
If you have questions about the local real estate market, reach out to the Amanda Howard Sotheby’s International Realty team at 256.799.9000.