Huntsville Real Estate

June 2008 Market Prices

Ok, we all know that sales have slowed in the past year but the larger question is: How has pricing been affected given the slower demand and resulting higher inventory levels?

Following the format of our previous May 2008 sales post, we take a look at the last two and half years of pricing statistics so we can put the current numbers in a longer term context.

Looking at the following Price/SqrFt chart:

One of the first things to note is the seasonal price trends ranging from lows in winter months (Jan) to highs in summer months (June). Unsurprisingly, this follows a very similar pattern as our demand volume illustrated in a previous post.

As highlighted in a recent Office of Federal Housing Enterprise Oversight (OFHEO) report in early 2006 sales and price declines were starting to occur in some areas of the country due to the sub-prime mortgage crisis, but this was not the case for our local market. In fact the report names Huntsville Real Estate in its list of Top 20 Metro Areas with the highest appreciation rates, coming in 15th place with a 7.3% percent increase for 2007 and a 6.7% annual rate over the previous 5 years.

This appreciation is apparent from our chart by looking at the Jan prices year over year 2006-2008. However, over the last 11 months since June of 2007 prices have yielded to the slower demand and higher inventory levels by moderating slightly (~2-3%) from the 2007 price peak and have leveled off with no discernible short term appreciation growth.

We do not see any indications of significant price declines. In fact, we are seeing in the MLS statistics that our current sales rate is beginning to work off excess inventory with our current inventory dropping ~3% May over May and our absorption rate inventory lower this month compared with last month with an ~7 month supply of single family homes.

If you are in the Huntsville Real Estate market and I can be of further assistance with your particular home, area, or price range of interest please don’t hesitate to contact or give me a call 256-425-1659.