Housing supply continues to increase, but can it meet demand? Huntsville, AL
Housing supply continues to increase, but can it meet demand?
April 3, 2023/in Community Development, Economy, Featured, Housing, Lead, News, Real Estate, Resource/by Marie Johnson
The latest weekly report from the Huntsville Area Association of Realtors (HAAR), dated for the week ended March 18, demonstrates that the inventory of homes for sale in Huntsville/Madison County has continued to increase.
The inventory of single-family units saw a 92% increase, up to 2,508 homes, while townhouses and condo units saw a 66% increase, up to 115.
Monthly reporting from February put the month-supply increases of single-family units up by 140% last month, up to 2.4 months’ supply, while townhouse/condo units increased 125%, up to 2.7 months’ supply.
While new listings have decreased for both single-family and condo units – by 16.2% and 50% respectively, pending sales have either picked up slightly, in the case of single-family units, or remained flat.
A new report from Realtor.com posits a nationwide shortage of 6.5 million single family homes. The report compared the number of households formed in the decade from 2012 to 2022 against the number of homes built in that same period of time.
15.6 million new households were formed over that decade, while only 9.03 million single family homes were constructed over that same time. When multi-family household starts, which compromised 35% of new households started in 2022, that deficit drops to approximately 2 million houses.
What this demonstrates is that Americans have adapted to housing prices by altering the arrangements by which they procure shelter. Whether it’s by adult children remaining with their parents, even as they themselves have children, or by unrelated adults banding together to pool their resources for shelter, the economic pressures of housing have altered the makeup of many American households.
The demand for housing remains high, both nationally and here in Huntsville specifically. The pending sales figures indicate that the decrease of sales has come to an end, and with mortgage rates appearing to stabilize and an anticipated spring pickup around the corner, April should be a brisk month for those looking to buy or sell residential real estate.
Keep reading the Huntsville Business Journal, as we keep track of these develops across the real estate market.
Tags: City of Huntsville, HAAR, Huntsville Area Association of Realtors, Realtor.com, Resource, State of Alabama