Number of homes available and median prices up over a year ago

HUNTSVILLE — There were more than 1,000 homes available for sale in the second quarter of this year, the first time inventory was more than 1,000 in two years, according to the quarterly report from the Huntsville Area Association of Realtors.

“The inventory of homes listed for sale rose significantly in the second quarter of 2022 to 1,055 homes which was the first time since July 2020 to exceed 1,000 homes,” the report said. “This inventory increase included a 185% increase in newly constructed homes and an 81% increase in existing homes available at the end of the second quarter.”

In a disparity of prices, there were just 67 houses priced below $250,000 available last quarter while some 300 houses in the $350,000 to $500,000 were on the market.

HAAR also said the supply of homes remained below one month for another quarter and homes are on the market an average of eight days.

Meanwhile, housing prices continued to rise, up nearly 20% from 2021, the report said. Monthly median sales prices continued to climb to another record of $346,900 in June.

“The sale of homes priced between $650,000 and $800,000 rose 82% from the second quarter 2021,” the report said. “Sales of homes priced below $300,000 continued to fall from second-quarter 2021 levels.”

In June, 856 homes were sold, compared to 965 in June 2021. But, overall, sales by month in 2022 closely tracked 2021 levels through May, HAAR said.

Helping fuel the record-setting pace was that more than half of the second quarter’s sales were an average of 5.2% above the listed price.

HAAR expects the market to balance through rising interest rates and more homes becoming available.

“The 30-year national quarter-end mortgage rate rose to 5.34% from second-quarter 2021 3.31%,” the report said. “The trend of rising interest rates and an increase of housing inventory appears to point toward a more balanced market for the middle to upper-priced homes though a deficit remains for buyers entering the market or purchasing a home below $300,000.”