July 2009
Huntsville Home Prices Decline Steeply
June and July are seasonally the strongest months of the year for Huntsville Real Estate prices however this year July has moved strongly in a non-seasonal direction with a price decline aberration, once again due to another dramatic and opposite shift in market mix.
Last month (June 2009) we saw the upper end market segment exert itself with dominant pricing driving up average home prices in the Huntsville Metro Area. This month we are seeing the exact opposite with Huntsville First Time Home Buyers and foreclosure fire sales making an impact on the local Huntsville Real Estate Market.
Average prices per-square-foot showed a -12% decrease in July when compared to July 2008 levels, July’s average selling price showed a -9.25% decrease from 2008 levels to $215,148, while July’s median price of $184,000 was -4.97% below 2008 levels.
Average Price Per Square Foot
Southwest Huntsville Dominates July Home Sales and Prices
Sales of homes in Southwest Huntsville dominated the local metro market this month soaring from 48 closings in June 2009 to 72 closings in July, a huge increase of 50% with most of these sales occurring in lower price ranges below $300k. Last month this price range accounted for 74% of the overall market while this month was remarkable, as these homes accounted for over 81% of all home sales during the month. Moreover while year-over-year price declines occurred within this market segment, the upper end segment experienced an opposite outcome and saw strong price increases, although the actual number of sales were insignificant when compared to sales within the lower price ranges.
Average Price Per Square Foot
| % of Sales | Price 07/08 | Price 07/09 | %Change | |
| 0 – 150k | 35.2% | $70 | $66 | -5.7% |
| 150k-300k | 46.3% | $98 | $87 | -11.2% |
| 300k-450k | 14.7% | $114 | $124 | 8.8% |
| 450k-up | 3.8% | $127 | $134 | 5.5% |
| All | 100% | $91 | $80 | -12.1% |
Scattered among the sales for this month were many starter homes, likely picked up by first time home buyers hurrying to take advantage of this years tax credit, and there were several foreclosure home sales at substantially discounted sale prices, thus this combination is sufficient in explaining the dynamic price mix and one month aberration price decline. However we will of course be watching developments closely and as always keep you posted on our local market’s internal dynamics.
