Local home sales improve during 2006

November figure takes big drop, still tops month in '05

Thursday, January 18, 2007

By GINA HANNAH

Times Business Writer gina.hannah@htimes.com

Home sales in the Huntsville market dropped nearly 20 percent in November, but remain ahead for the year, according to a University of Alabama study released Wednesday.

During November, 728 existing homes were sold in the Huntsville market, down from 900 in October and up slightly from 721 in November 2005, according to a report from the Alabama Real Estate Research and Education Center at the university. Despite month-over-month decline, sales for the year in 2006 are still ahead of 2005.

For the period January through November, 9,922 homes were sold in the Huntsville market, up 17 percent.

Statewide, sales of existing homes dropped, to 4,234 in November from 4,676 in October and 4,634 for the same month last year.

The drop was in part because of a typical seasonal decline, plus a larger inventory of homes on the market, said Suzanna Allaway, real estate resource specialist for the center.

"Home sales are very seasonal," said Dr. Leonard Zumpano, the center's director. "If you look at November and December, home sales are slow for a number of reasons - the holidays, the kids are in school, it's cold out and people don't want to get out and look at homes.

"I don't see anything in the Huntsville economy that would suggest anything wrong, either with the economy or with the home sector."

Prices up about 1%

Four areas saw a month-over-month increase in sales: the Birmingham metro area, Cherokee County, Jackson County, Marshall County and Walker County. And, despite the overall drop, prices rose about 1 percent in November, reaching an average selling price of $162,706. Zumpano said the increase in average selling price, despite an increase in the supply of available homes, may reflect increased sales of high-end homes.

Zumpano said he expects 2007 home sales to be "decent but less robust" than 2006. But if interest rates stay moderate, sales could remain very strong, he said.



Local home sales improve during 2006 November figure takes big drop, still tops month in '05 Thursday, January 18, 2007 By GINA HANNAH Times Business Writer gina.hannah@htimes.com Home sales in the Huntsville market dropped nearly 20 percent in November, but remain ahead for the year, according to a University of Alabama study released Wednesday. During November, 728 existing homes were sold in the Huntsville market, down from 900 in October and up slightly from 721 in November 2005, according to a report from the Alabama Real Estate Research and Education Center at the university. Despite month-over-month decline, sales for the year in 2006 are still ahead of 2005. For the period January through November, 9,922 homes were sold in the Huntsville market, up 17 percent. Statewide, sales of existing homes dropped, to 4,234 in November from 4,676 in October and 4,634 for the same month last year. The drop was in part because of a typical seasonal decline, plus a larger inventory of homes on the market, said Suzanna Allaway, real estate resource specialist for the center. "Home sales are very seasonal," said Dr. Leonard Zumpano, the center's director. "If you look at November and December, home sales are slow for a number of reasons - the holidays, the kids are in school, it's cold out and people don't want to get out and look at homes. "I don't see anything in the Huntsville economy that would suggest anything wrong, either with the economy or with the home sector." Prices up about 1% Four areas saw a month-over-month increase in sales: the Birmingham metro area, Cherokee County, Jackson County, Marshall County and Walker County. And, despite the overall drop, prices rose about 1 percent in November, reaching an average selling price of $162,706. Zumpano said the increase in average selling price, despite an increase in the supply of available homes, may reflect increased sales of high-end homes. Zumpano said he expects 2007 home sales to be "decent but less robust" than 2006. But if interest rates stay moderate, sales could remain very strong, he said. © 2007 The Huntsville Times © 2007 al.com All Rights Reserved.