There are some positive developments in the real estate market for potential homebuyers, with inventory in Madison County continuing to rise and returning to pre-pandemic levels, according to a recent report.
“Housing inventory increased 20%, but the largest increase was in the $250,000 to $300,000 (price) range,” said Curtis Krueger, CEO of the Huntsville Area Association of Realtors. I can’t help it,” he said. “I had never seen anything like that happen anywhere else. We all know Huntsville is special.”
Krueger was referring to findings from the 2023 Third Quarter Real Estate Economic Report, released in partnership with the University of Alabama Huntsville College of Business. This reflects key indicators of the local housing market.
According to the report, housing inventory increased to 1,807 units in the third quarter of 2022, compared to 1,496 units in the third quarter of 2022. Also, according to recent data from ValleyMLS.com, Huntsville/Madison County had 1,643 homes for sale in October 2022, compared to 1,882 homes for sale in October. did.
Krueger, who has led the Huntsville Area Association of Realtors and Valley MLS.com since Aug. 1, said the third quarter report showed the number of homes listed increased to the highest level since 2017. he pointed out.
Other findings from the third quarter report: Home sales decreased in the third quarter to 1,858 units across all price ranges compared to 2,331 units in the same quarter in 2022. This was the lowest third-quarter level since 2016.
Total home sales in Madison County were 9,569 in 2021, compared to 8,144 last year, according to data from the Huntsville Association. As of Nov. 20, 5,914 homes had been sold, and the county is on track to sell about 6,600 homes this year, said Sean Majors, director of communications and government for the association.
The median sales price fell slightly from $336,000 in the third quarter of 2022 to $331,705 in the third quarter, according to the report.
National Association of Realtors Chief Economist Lawrence Yun shared his outlook for 2024 this month on The Realtor Experience, a 2023 NAR NXT forum, suggesting that 30-year mortgage rates and federal funds rates could have peaked. He pointed out that it is highly sexual. He expects interest rates to fall to 6% to 7% by the spring buying season and expects more sellers to enter the market.
Krueger said, “There’s a lot of energy in the market right now, and there’s a whole generation of people who think that 3% or 4%[mortgage interest rates]are normal and completely abnormal. ”
Average contract interest rates for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) range from 7.61% to 7.41, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Nov. 17. %. The average contract interest rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration fell from 7.36% to 7.19%.
Additionally, the average contract interest rate for 15-year fixed-rate mortgages decreased from 6.94% to 6.89%.
“We’re very happy with Mr. Yun’s prediction,” Mr. Krueger said, adding that the decline in mortgage rates that Mr. Yun predicts “will cause further excitement in the market.” Everyone will participate from the sidelines. ”
Another finding from the third quarter report is that the average number of days on market in Madison County decreased to 26 days compared to 32 days in the second quarter, but was twice as high as in the third quarter of 2022. That’s what happened.
Majors said that while an increase in days on market may initially seem like a “bad sign” that homes aren’t selling as quickly, the increase gives sellers more time to consider multiple offers. He said buyers will be given the opportunity to view the home before it goes away. From the market.
“In 2021, homes sold in Madison County in an average of six to eight days,” he said.
Krueger praised the efforts of the city of Huntsville and the private sector to work together to address housing issues.
“We’re lucky to have this kind of cooperation here because homeownership is an issue everywhere and it’s an issue that’s taken seriously here,” he said.
Krueger pointed to the Mill Creek project, the redevelopment of Butler Terrace and Johnson Towers public housing, which created up to 750 housing units with a mix of market rate, Housing Authority, workforce and senior housing.
The project is seeking a Choice Neighborhoods Implementation grant, which can provide up to $50 million in federal funding.
“We are all very excited about (the Mill Creek project) and what it will bring,” he said. “When you have support from the city to make plans like that and do work like that, that’s a real community.”
Other metrics from the third quarter report include:
Madison County’s population increased to 406,026 in July.
The county’s workforce reached 205,157 in August.
Median household income rose to $81,968 in the third quarter.
Inflation is 3.7%, less than half the September 2022 level of 8.2%.