Four Year Summary
The following chart summarizes Huntsville Average Home Prices over the last four years; January 2006 through January 2010. We utilize average price per-square-foot in this analysis for various reasons, however the most important information to glean from this visualization is how the Huntsville Real Estate Market has weathered the country’s National Housing Crisis which began in earnest in 2006 and continues to this day. Nationally housing prices peaked in 2005, started a serious decline in early 2007, and by December 30, 2008 the Case-Shiller home price index had observed and reported the largest housing price drop in the history of the index.
The blue line in the chart above is a 12 month moving average of Huntsville Home Prices throughout this same period. A moving average statistic is helpful in smoothing out the month-to-month volatility that is very common in a seasonal industry such as real estate. Note that while the Nation, as a whole, was experiencing historical price declines, our local market prices continued a gradual growth upward and in reality was experiencing record high home prices. In fact average prices didn’t peak in our market until the fall of 2008; then experienced moderate price declines in early 2009, and have been basically flat since then as typified in the chart above.
Huntsville Market Not Immune
However this does not mean that Huntsville has been immune from the effects of the Nation’s financial crisis, one only has to take a close look at Elizabeth’s post last week on Huntsville Home Sales to see that our market is much smaller today than when sales peaked in 2006; approximately 30% smaller when measuring the peak sales in 2006 with the peak sales of 2009. If you are a full time real estate professional deriving the majority of your income from this business you are either gaining market share or you are feeling this slump significantly, basically its survival time.
If you are a consumer in this market, things have changed for you as well, there is price volatility underneath this smooth looking and somewhat deceptive price average, in some price ranges there is an abundance of inventory while in others inventory is tight, market conditions change often from neighborhood to neighborhood, thus having up-to-date information and working with a qualified Realtor has never been more important. Many consumers are no longer simply using a Realtor based on a friend’s referal, many sellers and buyers alike are now interviewing multiple agents and making their own personal choices. If you are one of these savvy consumers, Yes we would like an opportunity to earn your business and would certainly welcome a call or email to setup an interview.
– Tim
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