Huntsville Home Prices have rebounded with some strength from last month’s 2 year low, however this month’s recovery still did not break through the longer term moving average which is currently indicating a moderate 2-3% percent decline in average home prices when compared to last year’s performance.
This moderately lower average price trend has been present in our local Huntsville Real Estate Market since September 2008 and is illustrated, by the moving average and April-to-April trend line, in the following 3 year price chart.
Price Per Square Foot
A big contributor to this month’s price gains is the Northwest Huntsville MLS area where, due to a mix of higher price home sales and a general increase in home prices below $150k, average prices in the area increased substantially for the month when compared year-over-year.
It is also very important to point out that when looking across price ranges, that the First Time Home Buyer segment of homes under $150k saw average prices increase 6.2% across all metro areas, while homes over $300k saw moderate price declines, and the luxury end market over $450k saw year-over-year price declines in the neighborhood of 20%.
|%Mix||Price 04/08||Price 04/09||%Change|
|0 – 150k||39.6%||65||69||6.2%|
Within the First Time Home Buyer market not only are we seeing prices increase but we are also experiencing an increase in the number of sales and decrease in inventory. This segment of the market now represents 40% of all sales up from 35% a year ago.
There is little doubt that the First Time Home Buyer Tax Credit is creating a seller’s market within the starter home segment throughout the Huntsville metro area and we expect this segment of the market to remain unseasonably strong throughout the year.