Huntsville-Area Housing Inventory Keeps Climbing as Demand Stays Strong

The number of homes on the market in Huntsville and Madison County has continued to grow, according to the most recent weekly report from the Huntsville Area Association of Realtors (HAAR). The report covers the week ended March 18.

Single-family inventory rose 92% to 2,508 homes. Townhouses and condominiums posted a smaller gain of 66%, bringing that segment to 115 units.

Monthly figures for February showed a similar pattern in the pace at which homes would sell. Months' supply of single-family homes climbed 140% to 2.4 months. For townhouses and condos, it grew 125% to 2.7 months.

New listings moved in the other direction. They fell 16.2% for single-family homes and 50% for condo units. Pending sales offered a more encouraging signal: they edged up slightly for single-family homes and held flat for condos.

The local numbers arrive alongside a national analysis from Realtor.com, which estimates the United States is short by 6.5 million single-family homes. The report compared household formation with construction over the decade from 2012 to 2022. Some 15.6 million new households were formed in that period, while only 9.03 million single-family homes were built.

Counting multi-family housing narrows the gap considerably. Multi-family units accounted for 35% of new households started in 2022, and when they are included, the deficit falls to roughly 2 million homes.

The Huntsville Business Journal reads the figures as evidence that Americans have changed how they secure shelter in response to high housing prices. Adult children are staying with their parents, even after having children of their own, and unrelated adults are pooling resources to share housing. In the Journal's assessment, economic pressure has altered the makeup of many American households.

Demand for housing remains high both nationally and in Huntsville, the Journal noted. In its view, the pending sales data suggest the slide in sales has ended. With mortgage rates appearing to level off and the usual spring pickup approaching, the outlet expects April to be a brisk month for anyone looking to buy or sell a home.

The publication said it will keep following developments across the real estate market.