2009 lags first half of 2008; totals up for last 2 months
Madison County home sales for the first half of the year were down 16 percent from the same period in 2008, local Realtors reported Tuesday. But home sales have increased for two straight months.
From January through June, 2,083 homes sold in Madison County, compared with 2,488 for the same period last year, according to the Huntsville Area Association of Realtors.
Sales increased 4.2 percent from May to June, the second consecutive month that has shown an uptick.
"The Huntsville-Madison County real estate market remains very sound and, while down from the previous year, still reflects healthy growth and is in line with seasonal cycles characteristic of the industry," said Cindy Henson-Allen, the association's president.
A decrease in the number of homes on the market and consistent seasonal selling trends may be good signs for the market, said Dr. Leonard Zumpano, chair of real estate at the University of Alabama.
"It looks like a fairly stable market, even though it's depressed," Zumpano said. "Huntsville, like every major city, is suffering from dropping prices."
The median price for a single-family home dropped 2.1 percent for the first half of the year, to $172,000. During 2008, the median selling price - the price at which half of the homes sold for more and half sold for less - rose 3.2 percent over 2007.
In June, the number of homes on the market contracted 3.9 percent, from 2,968 to 2,852, and the number of days on the market dropped from 106 to 103.
Zumpano said Madison County's rising unemployment rate - it reached 7.9 percent last month - has likely contributed to lower sales.
"People are afraid to get into a 30-year mortgage if they think they might lose their job."
AL.com By Gina Hannah Times Business Writer
