Huntsville Real Estate Blog

2009 was a rough stretch for many Huntsville home sellers and buyers, but new reports hint at possible stabilization in the housing market that may prove beneficial for everyone. As 2009 rolled to a close and 2010 opened into a new year, economic and real estate reports poured out good news, but bad news wasn’t far behind. For each positive note, there is always that unavoidable “but”:

• Mortgage rates are holding steady below 5%, thanks to government intervention. Thanks to the low rates, more people are buying and refinancing. However, the downside is that banks are more reluctant to refinance or loan. This leaves many, who want to buy a Huntsville home, with the inability to do so. Ironic that, in a buyer’s market, it’s the banks with all the selling power.

The other “but” is that the Federal Reserve program providing the low mortgage rates is set to expire in March. Rates could very well double shortly after, which is highly likely to drop the number of interested buyers. A drop in buyer numbers will only further shift the supply/demand ratio.

• As of December 10, 2009, the number of foreclosures in a month had dropped 16%, nationwide. The home buyer tax credit expansion, foreclosure prevention programs and loan modification programs have helped, as well as state mandated financing programs. As great as that is, there were still over 300,000 foreclosures in November, 2009, which is 18% higher than November, 2008.

• Home prices are “firming,” showing improvement over five consecutive months. Although the rise is considered mild, fewer homeowners are underwater, where they owe more mortgage than their house is worth. Because housing prices are improving, home sellers are more confident in the listing prices they’ve set.

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You’ve listed your property. You’ve spent your weekends with people traipsing through your home. You’ve done everything you can and your Huntsville real estate is still sitting on the market while others around you are selling. Why won’t your home sell?

You’ve cleaned your home—you think. Let’s examine a few areas many people overlook:

• Did you stuff all your stuff in cabinets thinking no one will be bold enough to open cabinets and look inside? Hum… maybe. Maybe not. Lots of people open drawers, cabinets, and definitely will look in closets, so don’t stash all your stuff in closets. Besides being untidy it is likely that overstuffed closets will fall out in an avalanche when an unsuspecting buyer happens to peek.
• Are there dirty dishes stacked up, clothes in the laundry baskets, or used towels all over the bathroom? Just because you have to live in your Huntsville real estate until you sell it doesn’t mean it looks good to your buyers. The ‘lived in’ look only makes your home look comfortable when friends and family visit, not prospective buyers.
• Does your loving pet adore your visitors? Even the most well-behaved dog or cat may be a distraction. Not everybody is a pet lover, and even if they are they don’t want to have to deal with your pets while viewing a home.   Have your dogs and cats in their crates when buyers come to see your Huntsville real estate listing.
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There were 1,476 Madison County & Huntsville foreclosure homes for sale with 70 new foreclosures in January 2010. 1 in every 1,974 housing units received a foreclosure filing in January. The average sales price of a Madison County AL home was $195,766 and the average foreclosure sales price was $166,282, a $29,485 savings, according to RealtyTrac.com.

Madison County & Huntsville Foreclosure Activity and Home Price Index

The Madison County and Huntsville price appreciation dropped 0.04% in January with 70 new foreclosure homes.

Madison County AL foreclosure activity is based on the total number of properties that receive foreclosure filings – default notice, foreclosure auction notice or repossession notice – each month. Home price appreciation is based on month-over-month percentage change of the Home Price Index. The Home Price Index is calculated from home sales records.

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Huntsville has ranked second in Moody’s Economy’s latest report on expected employment growth. Read the Huntsville Times report:

HUNTSVILLE — Huntsville was ranked second out of 387 metro areas – and Mobile was No. 4 – in Moody’s Economy’s latest report on expected employment growth.

The Huntsville economy is beginning to recover from the recession, bolstered by the federal economic stimulus, the increased demand for durable goods and the ongoing relocation of federal and military jobs resulting from the 2005 Base Realignment and Closure Commission decision, according to Martin Soler Garcia, an assistant economist for Moody’s Economy.com.

In his analysis, Garcia predicts employment in Huntsville will grow 2.5 percent this year and 4.3 percent, 4.8 percent and 4.4 percent for the following three years. Personal income will increase by 3.1 percent this year, and grow by 5.4 percent, 7.3 percent and 7.1 percent over the following three years, according to the report.

Garcia forecasts the Huntsville area jobless rate, which in December was 8.1 percent for the Huntsville metro area, which includes Limestone County, will be 9.1 percent this year, then 8.2 percent in 2011, 6.5 percent in 2012 and 5.7 percent in 2013. The Madison County jobless rate was 7.7 percent in December.

Other Alabama communities’ rankings in anticipated employment growth were Auburn-Opelika area, No. 23; Montgomery, 29; Birmingham-Hoover area, 53; and Tuscaloosa, 61.

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Home sales surged in the fourth quarter of 2009 with many areas seeing double digit gains according to the National Association of Realtors. Total existing-home sales (single-family and condo) jumped 13.9 percent above the third quarter and 27.2 percent above the fourth quarter of 2008. Distressed property sales accounted for 32 percent of the fourth quarter transactions, down from 37 percent from 2008.

Lawrence Yun , NAR chief economist, said the first-time home buyer tax credit, combined with record low interest rates, played a dominant role in fourth quarter sales. Yun went on to say, “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

Take a look at how Huntsville real estate sales statistics in January 2010 compared to January 2009.

Madison County/Huntsville Real Estate Sales Statistics

Huntsville and Madison County saw a decrease of 14% in sold listings when compared to January 2009.  The average sales price decreased by 7% to $189,639.  The average price per square foot decreased by 1% when compared with January 2009.  And the average list price decreased by 7%, while homes were on the market an average of 12 days less than January 2009.

For more information about Huntsville real estate, please visit MoveToHuntsville.com or call me at 256-508-0211.

To begin searching Huntsville real estate and homes, please use my complimentary MLS search.

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

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Picking a Huntsville real estate agent is a big decision. Buying a home isn’t something most people do on a regular basis and rarely do they know agents personally or have one on retainer like they may have a lawyer for regular business purposes.

If your job doesn’t entail a lot of property transactions you might feel like a fish out of water when looking around for a Huntsville real estate agent.  Fortunately, deciding on the right one isn’t as hard as you might think.

Real Estate Agents Are People Too

That’s right, they have the same qualities you would think of in any other individual you might do business with.   So, finding an agent really comes down to measuring many of the same values you’d use to choose another business associate. 

• Honesty
• Reputation
• Track Record
• Associations

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Real estate aficionados who follow the upswings and dips in the Huntsville real estate market were worried that the end of the first-time home buyer’s credit would mean an end to housing sales. Sales were up, prices were down and the market seemed to be stabilizing – thanks, in large part, to the tax credit.  The tax credit motivated potential home buyers to become actual home buyers, which kept home sales stable.

Fortunately, those worries were groundless.  President Obama signed a five-month extension on the first-time buyer tax credit November 6^th. The Worker, Homeownership and Business Assistance Act of 2009 covers quite a few new bits of housing legislation:

• Extends the first-time tax credit until April 30, 2010
• Expands to include those home buyers that haven’t owned a home in three or more years
• Allows first-time buyers that are overseas military personnel to take advantage of the credit until May 2011
• Requires documented proof that the buyer actually bought a home
• Changes the credit amount from $8,000 to “$8,000 or 10% of the home’s value”, whichever is less
• Sets the qualification guidelines at $125,000 a year or less for individuals and $225,000 or less for couples (credit amount becomes a scaled decrease above these income levels)
• Requires a minimum age of 18 for those applying for the tax credit
• Adds $6,500 tax credit for those that have lived in a home for at least five years, but want to buy a larger house
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Consumer Reports surveyed over 17,000 readers on the state of their home improvement projects. The results of the home improvement survey point out that you should definitely do your homework before doing the home improvement on your Huntsville real estate.

Over half of those surveyed went at least $2,000 over budget for room additions. On basement finishing, 56% spent $1,350 over budget. Kitchen remodeling also had 56% going over budget, by $1,200. Lastly, 45% went over budget by $700 on deck additions. What was the reason? Surprisingly, they all had similar reasons:

• Plan adjustments
• Underestimated labor
• Increased cost of materials
• Special tools needed
• Unexpected system upgrades

If you plan to remodel your Huntsville real estate in the near future, keep these tips in mind so your home improvement goes as planned:

• Do your research – Factor in delivery and removal fees.  Make sure you know which products the contractor should have and plan ahead.
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If your Huntsville home for sale isn’t selling, you’re probably wondering if you’re missing something. Well, here’s a list of things you might not know that could make all the difference:

1. If the location of your Huntsville home for sale isn’t great, the price and terms are the only thing that will sell it. Make them outstanding!
2. Attractive, competitive terms may help you get a higher price. For instance, if you’re allowing the option of owner financing, and also allow a smaller down payment (say, $20,000 – $30,000), you may be able to sell your house for a higher overall amount.
3. Because of the current high competition, your home has to be in the best condition at a competitive price. Check out the competition, accept that yours might need work, and get to it.
4. You can’t set a limit for home improvement. If your home needs something done to beat the competition and you can do it, do it! You aren’t just spending money; you’re investing in the sale of your home. Although you may not get all your money back, you just might get a quick sale at full value.
5. Staging – you’ve heard of it; tons of agents are talking about it. If you want to get your house sold, either invest in staging services or do your homework and stage the home yourself. It’s all about presentation.
6. Remember that you are no longer the host/hostess of the house. You are a business person, and your business is getting that house sold. Don’t let your emotions get in the way of a solid business deal.

Putting up your Huntsville home for sale is a daunting prospect. If it’s been up for a while, it can be an exercise in frustration. However, keep the above points in mind, listen to the experts and put what you learn to work for you.

If you’d like to get your Huntsville home sold, I can help. Call me at 800-803-0053, 256-508-0211 or email me at mike@movetohuntsville.com for more information.

What’s your Huntsville home worth?

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There were 1,393 Madison County AL foreclosure homes for sale with 166 new foreclosures in December 2009. 1 in every 827  housing units received a foreclosure filing in December. The average sales price of a Madison County AL home was $171,944 and the average foreclosure sales price was $155,378, a $24,018 savings, according to RealtyTrac.com.

Madison County AL Foreclosure Activity and Home Price Index

Madison County AL foreclosure activity is based on the total number of properties that receive foreclosure filings – default notice, foreclosure auction notice or repossession notice – each month. Home price appreciation is based on month-over-month percentage change of the Home Price Index. The Home Price Index is calculated from home sales records.  

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