Huntsville Alabama Real Estate Market Reports

The Huntsville Housing Market is down 36% from this year’s high which was established in June 2010. Huntsville Real Estate is hanging tough however and has remained relatively flat over the last 4 months, from July through October.

Our numbers year over year look very depressing at -28%. However, comparing apples to apples, October of 2009 was nearing the end of the First Time Home Buyers Tax Credit. This created a non-seasonal aberration versus the seasonal “norm”.

Market’s Performance within Seasonal Norms?

Well yes and no! If the seasonal norm means that home sales are lower in the fall vs the summer, then yes the Huntsville Real Estate market is performing within seasonal norms. However, if this October is to be compared with previous Oct results over the last 4 years, then no! Our local market performance is clearly down some -30% from what was ‘normal’ in the recent past.

Higher Median Home Price – Much to do about Nothing!

Much of the local housing market spin over the last few months has promoted the fact that the Median Home Price in Huntsville Al has been moving higher when compared to last year, as if the higher median home price indicated that Huntsville home values were increasing. Let me assure you that nothing could be further from the truth!

Given that the local Huntsville audience of readers are highly educated professionals, the definition of ‘median‘ does not have to be elaborated to understand that all a higher median price means is that the price range mix of homes being sold has changed when compared to last year, that is all!

This is so simple it pains me to explain it. Just note the chart above where you will see that Huntsville Real Estate in the upper end price range mix stayed relatively the same, while sales of homes $150k and below dramatically decreased when compared to last year.

The explanation is clear as to why...the expiration of Tax Credit...that’s why!