HUNTSVILLE — The Huntsville area is in a home sales slump, reflecting a statewide and nationwide trend.
According to ValleyMLS.com, April home sales in Madison County decreased 20.6% year-over-year from 778 to 618 closed transactions. Contrary to seasonal trends, sales decreased 5.1% from March. Sales are down 20.9% year-to-date.
“Alabama’s housing market is continuing a slow start to the year and spring season,” said Alabama Realtors CEO Jeremy Walker. “Home sales are heavily influenced by interest rates.
“Credit conditions and economic uncertainty have continued to hinder our state’s housing market.”
Houses were on the market nearly a month longer in April than a year ago. According to the report, homes sold last month averaged 37 days on the market, 29 days slower than April 2022.
Alabama had 6,863 home sales in April, a decrease of 2,015 sales compared to April of last year and a decrease of 235 homes sold compared to March.
While Huntsville home sales were down, they exceeded the forecast. April sales were 37 units, or 6.3%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast.
ACRE projected 581 sales for the month, while actual sales were 618 units. ACRE forecast a total of 2,007 sales in the area year-to-date, while there were 2,104 actual sales through April, a difference of 4.8%.
Of the 618 houses sold, 208 were new construction – a 12.8% decrease year-over-year.
The median sales price in April was $332,057, a decrease of 0.8% from one year ago and an increase of 1.5% from March. For new homes, the median sales price in April was $347,857, a decrease of 1.4% from March and a decrease of 4.4% from one year ago.
As the sales slow, the inventory of homes on the market increases. There were 1,382 houses listed in April – an increase of 91.4% from one year ago. At the current sales pace, all the active inventory on the market would sell in 2.2 months, up from 2.1 months in March and up from 0.9 in April 2022.
The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply.
For all Huntsville-area housing data, click here.
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