2021 brought quite a dynamic to the housing market in Huntsville and surrounding areas in North Alabama. According to ShowingTime’s annual report, buyer demand driven by pandemic-induced changes to housing needs and preferences reached extraordinary levels in 2021. The inventory of homes for sale remained low, as home seller activity did not rise proportionally to meet this demand. Here’s what we found most interesting from this report:
“…new construction activity, while strong, remains limited by a combination of material and labor shortages, rising material costs, and a regulatory and operational environment that makes it difficult to scale quickly.”
“The strong seller’s market of 2020 continued and even strengthened in 2021, with inventory levels remaining low and multiple offer situations common across much of the housing market both locally and nationally. Multiple offers again drove prices significantly higher for the year.”
Sales
Pending sales decreased 1.5 percent, finishing 2021 at 16,457. Closed sales were up 3.2 percent to end the year at 16,425.
Listings
Comparing 2021 to the prior year, the number of homes available for sale was lower by 17.2 percent. There were 1,380 active listings at the end of 2021. New listings increased by 1.8 percent to finish the year at 17,940.
Sales by Price Range
The number of homes sold in the$159,000 or more price range rose 14.7 percent to14,348 homes. Homes sold in the $68,999 or less price range were down 49.1 percent to 357 homes. 2021 Annual Report for ValleyMLS.com
Prices
Home prices were up compared to last year. The overall median sales price increased 17.7 percent to $265,000 for the year. Single Family home prices were up 16.8 percent compared to last year, and townhouse-condo home prices were up 18.5percent.
List Price Received
Sellers received, on average, 100.6 percent of their original list price at sale, a year-over-year improvement of 1.6 percent.
The 2021 housing market was once again strong both locally and nationally. Inventory shortages and high buyer demand continued to push home prices higher, with multiple offers on a limited number of homes the common theme in most market segments. This year looks to continue the trends seen in the last 18 months, pushing home prices higher still. As mortgage rates are likely to continue to rise over the year as well, housing affordability will remain an important factor to watch.
You can read the full report here: https://haar.realtor/showingtime-marketstats-annual-report/
