Huntsville Real Estate Blog

According to the latest forecast by the National Association of Realtors®, tightening credit standards for those applying for home mortgages will likely dampen home sales in the short term and postpone an expected recovery for existing-home sales until 2008. 

Lawrence Yun, senior NAR economist, said unusual disruptions in the mortgage market are dampening the outlook for home sales, notably for August and September.  “There’s been an unusual hit to home sales, starting in March when subprime problems emerged and more recently when problems spread to jumbo loans, with many potential home buyers on the sidelines.”  He noted, however, that “the volume of existing-home sales this year will be better than 2002, which was the second year of the housing boom.”

Let’s take a look at August sales statistics to see how the market looks in Huntsville.

Huntsville/Madison County Market Statistics

The Huntsville and Madison County markets continue to defy national real estate trends, with increasing home sales and average sale prices, along with shorter average market times.

The average sales price increased in August 2007 by approximately 8% from August 2006 to $196,695. The price per square foot also increased by 7% to $90 per square foot.

The number of homes sold increased in August by 4%, or 23 homes, as market times decreased by 28%. The SP/LP ratio remained almost the same from 2006 to 2007.

As these statistics show, now is a great time to consider buying a Madison County or Huntsville AL home.  To begin searching for Madison or Huntsville AL homes, please use my complimentary MLS Search, or call me at 256-508-0211.  If you are thinking of selling your Madison or Huntsville AL home, please call me or sign up to receive information on the last 10 homes sold in your neighborhood -  we can work together to make sure you get a great deal!

Statistics are based on information for the North Alabama Association of Realtors and are deemed reliable but not guaranteed.  

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Getting a good deal on a home is often more about timing than purchase price.  Because most homes are financed through at least a 15-year mortgage (usually 20- or 30-year), the amount paid in interest has an enormous impact on what the home will ultimately cost.  The contract price may be $150,000. By the time interest is calculated over 30 years, however, you could easily pay twice or even three times that amount, depending on what the interest rate is on the day you lock into a mortgage rate.   

Lower interest rates make it possible to finance the same amount of money for a lower mortgage payment, or finance more money without increasing the payment.  How so?  Let’s look at financing $150,000 for 30 years at 6.50%.   

Your approximate principal and interest payment would be about $948 monthly.  If the interest rate dropped to 6.00%, the payment would decrease to approximately $899 per month.  Another option would be to finance $158,000 with a monthly payment of roughly $947.  This option would allow you to borrow an additional $8,000 without hardly changing the payment.  Whether you’re looking to buy your first home, or thinking about upgrading to a bigger one, lower rates open the opportunity to find a great buy.  The other vital element is location.  The award-winning city of Huntsville, Alabama has much to offer.  

The Value of Huntsville 

No one wants to buy a home that won’t hold its value.  So, where do you look to ensure you get value?  In a June 30, 2007 survey, the Office of Federal Housing Enterprise Oversight (OFHEO) reports, “Of 287 metro areas, 131 recorded decreases in house prices during the quarter.”  The Huntsville real estate market, however, was ranked 36 out of 287 in price appreciation, and came in above average with a second quarter increase of 1.76%.  Plainly stated, while houses in many areas are losing value, Huntsville, Alabama is still an affordable and wise housing choice. 

What Does Huntsville Have To Offer? 

Huntsville is widely recognized as being one of the country’s best places to work, live and go to school. The September 2007 issue of U.S. News & World Report says, “The University of Alabama in Huntsville ranks among the top ten percent of business schools in the county.”  Check with MSN/Sperling’s Best Places and you will find that Huntsville is named one of the country’s top ten cities for job growth and affordability.  So, what makes this southern town such a remarkable place to live?  Huntsville offers a thriving job market, lower than average cost of living, plenty of options for entertainment and a climate that enjoys the best of all four seasons.   

If you’re considering buying a home, now may be a good time to do so if you’re looking in the Huntsville real estate market. And with all it has to offer, Huntsville could easily be just what you’ve been waiting for.

Mike Manosky has over 15-years experience serving the needs of those who wish to buy. 

If you’re thinking of moving to Huntsville, real estate listings that match your criteria can be sent to you immediately. Contact Mike today to get started. http://www.MoveToHuntsville.com.

By Mike Manosky © 2007, All Rights Reserved 

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