Amandas Monday Morning Coffee – January 3rd 2011
Happy New Year!
I trust you and your family had a wonderful New Year celebration, be it ringing in the New Year with a kiss, a dance, or an early night’s rest.
I am so excited about 2011 and all that it will hold. As much as I am excited for the future, I have also been using this long weekend to reflect on my own personal life, on my business as we are closing our first full year, and on Huntsville’s real estate market as a whole. I have compiled some of the statistics and will continue to research them over the coming two weeks. So read on as I have a lot to share this week, but as always, our stat findings will grow along with the coming month.
This is the time of year when we look forward to a new year with hope and anticipation. It’s the perfect time for making a list of resolutions to achieve a greater life, liberty and pursuit of happiness. A new year is a reminder to celebrate all the things that are good in your world; the people you love, the places you are a part of, and the memories you hold on to. It’s a time to celebrate those unforgettable moments when you close your eyes and breathe in life with a smile.
May your heart be filled with lots of little reasons to celebrate this opening week of 2011 and each day following.
Sincerely,
-Amanda
*Read more below for other exciting news updates*
Market Update
Amanda’s National review:
Nationally we are hearing that the US housing is likely to continue lagging broader recovery into 2012, with sluggish sales and slowly stabilizing prices. The US economist at Capital Economics, Paul Dales, is predicting that US sales are going to be slow for another two years as the market struggles to recover in 2011.
Real Estate sales fell nearly 5% in November from the previous month and are now 26% lower than a year earlier, according to the most recent National housing report.
The real estate market is struggling to find secure footing after the end of the homebuyer tax credit program earlier this year.
While home sales usually decline in winter months, we are seeing a larger than normal correction this winter due to several artificial factors such as the expired tax credit. However, there was much national chatter regarding falling home prices, though they appear to remain stable with several markets reporting significant price increases over this past year.
A monthly survey that covers 54 metropolitan areas, showed that none of the areas reported an increase in November sales from the year earlier. The top five markets that experienced a sales gain last month from October include Jackson, Mississippi and Billings, Montana both with a 9.2% increase, Las Vegas up 4.7%, Birmingham, Alabama up 3.8%; and Miami up 3.6%.
The report also shows that housing starts rose for the first time in a few months in November climbing 3.9% from the previous month, though building permits for new home construction fell to the lowest point in a year and a half, according to the Commerce Department.
November saw a surprising increase in housing starts but low building permits indicate a dismal outlook. See the following article from Property Wire for more on this.
Starts rose to a seasonally adjusted rate of 555,000 units, up from a revised 534,000 units for October but still 5.8% lower than a year earlier. While permits for new construction, a leading indicator of future building activity, decreased to 530,000 in November, which is 4% lower than the revised October figure of 552,000 and 14.7% below the year ago estimate of 621,000.
Amanda’s Local review:
Locally, here are the statistics I have gathered to start our review of 2010.
We have seen a steady decline since 2008 of the number of homes selling in North Alabama; however the Median price took a dip from 2008 in 2009, but has boosted back up to being almost level in 2010. We observe that the days on market have risen slightly year after year the past three of our review, but not so much as to make any major effects on families; however, the inventory has risen significantly since 2009.
In reviewing the areas selling by area, we see that when comparing exact dates and areas from 2010 vs. 2009 it is noted that though we have had a decrease in the number of homes moved, our over-all values have slightly moved up. Only a few local market areas had a decline which was noticed in Madison outside city, Madison County NW, Madison County SW, Madison County SE, DeKalb County, Limestone County, and Arab city.
Past Month reminder of Real Estate Milestones in November 2010
Homes sales increased by 14.24 percent compared to October 2010 and slipped by 32.89 percent compared to November 2009.
At $167,850 the November 2010 single-family home median price fell by 4.09 percent from October 2010 and decreased 0.09 percent from November 2009.
The number of available properties (active listings) in November decreased by 2.89 percent compared to October 2010 and rose 15.08 percent compared to November 2009.
The November 2010 Average Days on Market (DOM) increased by 4 days to 93 compared to October 89 days and increased by 5 days from November 2009
The information published and disseminated to the North Alabama Multiple Listing Service (NALMLS) is communicated verbatim, without change as filed by MLS participants. The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported include a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures.
