Limestone County Real Estate sales improving

Local home sales recovering

By Karen Middleton 
karen@athensnews-courier.com 

Local home sales are not showing the 11-percent rise seen nationwide, but one Realtor said sales are improving.

Patsy Gooch, president of the Limestone County Realtors Association, said Monday, “We’re still down below last year, but we’re looking up,” Gooch said.

According to the National Association of Realtors, U.S. home sales rose by the largest amount in more than eight years in June. Officials take this as a sign the housing market is recovering from the worst downturn since World War II.

“This quarter, we sold a total of 215 homes in May, June and July,” Gooch said. “This is 39 units down from the 254 we sold in the same time last year.”

Nationwide, sales have risen for three-straight months with the median sales price of $206,200, which was down by 12 percent from last year’s $234,300.

According to the National Association of Realtors, the median sales price of a home in the South is $159,300.

“We’re improving but we’re not back to where we were,” Gooch said. “The Athens and Limestone County real-estate market remains very sound. While we are down from the previous year, I believe our figures still reflect a healthy market and are in line with seasonal sales.

“We are so encouraged by what’s happening nationally in home sales,” she said. “All of our Realtors have stayed very positive and we all feel we will recover very soon.”

 

Huntsville Alabama Real Estate Market Conditions…..

Huntsville/ North Alabama Area MLS Statistics for Huntsville, Alabama Residential Real Estate Market June 2009

Huntsville/North Alabama Area MLS Observations Huntsville, Alabama Residential Real Estate Market June 2009:

1st Half	Total $ Sales	Total Unit sales	New Unit sales	Used Unit sales
2008	888,461,742	5263	1166	4097
2009	649,986,157	3971	774	3197
% difference	-27%	-25%	-34%	-22%

The 1^st Half numbers pretty much speak for themselves.

Huntsville, North Alabama market was fairly strong in June as is expected in the traditionally strongest sales month of the year. This pattern still shows continued weakness in the overall market as the sales levels for the last three months are below the 2004 levels. June total dollar sales were $139,611,384, 17%, higher than last month’s $119,033,523, and 22% below last year’s level of $178,948,964 (A  4).

Total unit sales increased from 715 in May to 804 in June, an increase of 89.

New sales increased from 136 homes last month to 150 this month, an increase of 14.

Used sales increased from 579 homes last month to 654 this month, an increase of 75 (E  3).

Unfortunately the slight trend down in absolute numbers of used homes for sale seems to have stalled at a fairly high number. Used homes are 12 months of inventory in all price ranges. The inventory situation remains challenged in the higher price ranges. Used homes over $200,000 are now at over 17 months of inventory, and in some price ranges as much as 4 years of inventory.

New houses over $400,000 are over a year’s worth of inventory, and in some price ranges over four years of inventory. (E-1). There still remain 1,593 New homes for sale, slightly less than double what would have been normal prior to 2006 (C-1). I have noted on the web site what seems to be a large number of housing permits issued, given the market conditions. To examine it a bit of detail: In Huntsville city for New homes, active inventory was 514 homes; we showed 51 homes sold, 89 new listings (June) and 82 new single family housing permits issued (May), So new listings ran 1.75x sales and permits 1.6x sales.

Total Active listings decreased by 6% this month at 8,309 compared to last month at 8,828 (A 4 and E-3). New houses New listings ran almost 2 times the rate of sales (B 1). Active New listings decreased from 1,918 last month to 1,593 this month, down 325 (Page E-3). Since there were only 145 new homes sold and 271 new listings, there was an unusual number of listing cancellations, and expirations (415!) which will probably come back to market; I noticed a large number of these for the top three builders in the area. Active Used listings decreased from 6,910 last month to 6,716 this month, down 194 (E-3).

Given the high number of homes for sale (over 7,500), the BRAC realignment will not cure the market, particularly in light of other employment problems. What banks are funding construction?

Absorption for New homes improved a bit at 11 months of inventory in June. This is a deterioration of 1 month from last year at this time. See Section E page 8. Absorption for Used homes was 12 months of inventory in June same as last month. This is a deterioration of 3 months from last year’s level at this time (E  8).

Average Days on Market for Sold New houses was 170 days vs. 139 days last month, with Used at 124 vs. 118 last month. (See Section A Page 18). Contrary to some belief, this increase is a good sign, since buyers are buying homes that have been on the market for a long time scooping up some of the older listings.

Average sales price for Sold New homes was $246,642 vs. $230,984 last month. (A 2)

Average sales price for Sold Used homes was $156,903 vs. $151,329 last month. (A 2)

The mix of higher and lower priced homes is jumping around quite a bit so it’s hard to read too much into average prices. However it is worth noting that the average price 12 month moving averages are all pointing down.

Lake Forest Neighborhood Profile

Lake Forest in Southwest Huntsville

From the Lake Forest Website:

Tucked in the quiet South West corner of Huntsville sits a haven all its own. Just minutes from downtown, the arsenal and research park; Lake Forest is a premier guarded community built in harmony with the existing natural environment. It is here that you’ll enjoy unique and abundant amenities that create a more relaxed way of life; and in a setting that is reminiscent with the pace and mood of your favorite vacation get away. All this backed by the strength and experience of Breland Properties: known for creating the finest quality master planned communities. The most recent being the much sought after Highland Lakes Community.

One of Lake Forest’s finest attributes is its open space for community members to enjoy. Nearly 15% of the community is reserved for open space and recreation celebrated with a 30 acre fishing lake, clubhouse, fitness center, parks, pools, tennis courts, play area, walking trails, and a soccer field. Best of all, with the Wheeler Wildlife Refuge as a peaceful backdrop, each home site in Lake Forest offers something special to all who live here.

 

THE SURROUNDING AREA

Whittle away a sun-soaked afternoon watching a ball game in Joe Davis Stadium. Uncover a bit of your artistic side at the Huntsville Museum of Art, or stroll the path ways of the Botanical Gardens. Unique attractions include the Space and Rocket Center, Lake Guntersville, Sci-Quest, and the Robert Trent Golf course. But of course, the best part of a day on the town is returning home to your oasis called Lake Forest.

 

THE HOMES

Lake Forest’s homes come in many styles and sizes, including patio, garden, plantation, traditional single family, historic, southern and custom single family. Homes are priced from the $220’s to more than $1,000,000 and custom home sites (lots) are priced from the 60’s. Our carefully selected builders utilize the latest in value engineering, while maintaining the character and charm of homes of yesterday. Design guidelines have been carefully established that encourage authentic architecture as well as attention to detail and landscape design.

How to Improve Curb Appeal

Curb Appeal Exercise

The next time you come home, stop across the street or far enough down the driveway to get a good view of the house and its surroundings.

 

1. What is your first impression of the house and yard area? 
2. What are the best exterior features of the house or lot? How can you enhance them? 
3. What are the worst exterior features of the house or lot? How can you minimize or improve them?

Park where a potential buyer would and walk towards the house, looking around you as if it were your first visit. Is the approach clean and tidy? What could you do to make it more attractive?

Take photos of the home’s exterior. If you have a digital camera, view the color versions first, then remove the color and look at it in black and white, because it’s easier to see problems when color isn’t around to affect our senses.

Make a list of the problem areas you discovered. Tackle clean up and repair chores first, then put some time into projects that make the grounds more attractive.

 

• Kill mold and mildew on the house, sidewalks, roof, or driveway. 
• Stow away unnecessary garden implements and tools. 
• Clean windows and gutters. 
• Pressure wash dirty siding and dingy decks. 
• Edge sidewalks and remove vegetation growing between concrete or bricks. 
• Mow the lawn. Get rid of weeds. 
• Rake and dispose of leaves, even if your lot is wooded. 
• Trim tree limbs that are near or touching the home’s roof.

 

Don’t Forget the Rear View

Buyers doing a drive by will try their best to see your back yard. If it’s visible from another street or from someone’s driveway, include it in your curb appeal efforts.

 

Evening Curb Appeal

Do your curb appeal exercise again at dusk, because it isn’t unusual for potential buyers to drive by houses in the evening.

One quick way to improve evening curb appeal is with lighting:

• String low voltage lighting along your driveway, sidewalks, and near important landscaping elements.
• Add a decorative street lamp or an attractive light fixture to a front porch.
• Make sure lighting that’s visible through front doors and windows enhances the home’s appearance.

 

Landscaping Decisions

There are times that adding elements to your landscaping can improve curb appeal, but there are other times when removing something is even more effective.

For example, we had a listing for a large brick house with large white columns. Tall evergreens, planted in front of each column, had grown taller than the roof. They obscured the columns and windows and made it difficult to see the front of the house.

We suggested that the owner remove them. She trimmed them back, but it didn’t do the trick—they were unattractive and still kept potential buyers from seeing the true character of the house.

I sold the house to a couple who could see past the trees. One of their first tasks after closing was to yank them out of the ground, instantly boosting the home’s curb appeal.

Most buyers cannot visualize changes, and often won’t take a second look at a house if the first look doesn’t appeal to them. Home buyers who can visualize changes, and are prepared to make them, expect you to reduce the price of the house to compensate for the work they plan to do.

 

A Few Curb Appeal Tips

 

• If you can budget it, a fresh paint job does wonders for a dingy house. Drive around your town to find color schemes that are appealing. 
• Install a more attractive front door, maybe something with leaded glass inserts. 
• If you can’t justify the cost of a new door, consider replacing plain doorknob hardware with something more attractive. 
• If new hardware is beyond your budget, repaint or stain the door and polish the hardware?

If you brainstorm, you’ll find that there’s a solution to most problems—one that lets you stay within your budget. The trick is to find the areas where improvements are needed, then work on them as best you can.

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