HAAR Annual Report shows decade of growth as home sales continue to rise, inventory continues to fall

Since 2012 the number of homes sold and the home median sales price in Madison County has trended higher in an annual seasonal pattern. The 2021 Annual Report and Q4 Real Estate Economics Report released by the Huntsville Area Association of REALTORS® (HAAR) in partnership with the UAH College of Business Friday shows there is a lot to jingle the house keys at in those reports. The grand total of all sales grew to $3.1 billion in 2021, 21% above the $2.5 billion of 2020. Existing home sales totaled $2.1 billion and new construction sales reached $961 million with condos and townhomes jumping 57% to $38 million last year.

Madison County REALTORS® sold 9,569 homes in 2021, nearly doubling the 4,776 sold a decade ago. Of those nearly 10,000 properties sold, the average days-on-market (DOM) was 13 days compared to 27 days last year and 90 days in 2016. A falling DOM suggests a rising demand or a falling supply and both occurred in 2021.

The median sales price grew approximately 70% during the same period to an annual level of $287,000, resulting in home prices rising to record levels in 2021 with the greatest number of listed homes at year-end in the $300,000 to $350,000 range.

The median 4th quarter price was up 17% over 4Q 2020, however rising prices had minimal impact on increased housing demand.

There were 1,044 more homes sold in the 4th quarter than were on the market at the beginning of the quarter and when compared to 4Q 2020, 2021 finished off the year at breakneck speed.

Despite 10 years of growth, the reports also show the lingering challenge of housing inventory.

While the inventory of listed homes continued to shrink, the number of newly constructed homes coming on market increased 3% despite the supply chain and labor force challenges during the year, so the inventory shortage is a work in progress, slow as it may be.

Overall, Huntsville’s growth in good-paying jobs is expected to help first-time home buyers in the near term, and Madison County home demand and supply is expected to grow as well.

This growth may not be limited to Madison County as contiguous counties in Alabama and Tennessee will likely experience similar housing market trends, highlighting the connectivity of the regional economy.

“2021 showed another year of success for homebuyers and sellers because of REALTOR® professionalism and dedication to their clients,” said 2022 HAAR president Isaac Winkles. “Because of REALTOR® professionalism and dedication to their clients, we are thankful for the steady leadership of our elected officials and their staff for fostering an environment that promotes the American Dream of owning a home.

“We will continue our work with local builders and other stakeholders to ensure inventory increases along with home values.”