Unless you’ve been hiding under a rock for the past year and a half, you know that the real estate market is hot. Demand is high and supply is low, and the Huntsville Metro area is no exception.
We’ve all heard the stories of cash offers and sellers receiving multiple offers for well over the asking price. To better help us understand and navigate the Rocket City Real Estate market, we reached out to six Huntsville Real Estate pros and asked them to weigh-in on trends they are seeing in the Huntsville Metro Area.
Whether you’re looking to purchase a home in the area soon, or you’re contemplating selling, here’s what these Huntsville real estate experts have to say.
Nicole harTenbach
Team Leader/REALTOR®
InTown Partners Real Estate Group with Keller Williams Realty Huntsville
Nicole@InTownPartners.com
How would you describe the current housing market in the Huntsville Metro Area?
While the severe shortage of inventory will continue; and demand will not let up, we’re seeing encouraging micro-adjustments in the market. Days on market and months of inventory are slowly on the rise, which is helping to alleviate some of the demand pressure. That coupled with a historic seasonal slowdown (this year will be ever so slight), there is a lot of opportunity in the market for serious buyers and sellers. Again, these are small changes, but the direction is headed toward a more balanced market.
What advice would you offer sellers in this market?
While inventory is growing (remember – tiny micro-adjustments), it is still nowhere near what it needs to be to meet demand. With strong guidance and advice, buyers competing for your home equates to not only more money in your pocket, but often a timeline dictated by your schedule, less contingency headaches, and an overall smoother experience. Interest rates impact you, too. As rates go up, buying power goes down considerably. The number of people who can afford your home now will decrease in the coming months. The average home – YOUR home – appreciated nationally by more than $50,000 over the past year, according to CoreLogic. Timing is everything, so take advantage of this incredible market.
What advice would you offer buyers in the current market?
You have more options now than you did at the beginning of the year. How exciting is that? Know that price is not always the most important aspect of your offer. Many sellers are willing to give up thousands of dollars for creative and thoughtful terms (like offering the sellers a free rent-back period). While most homes have been selling well above asking price, try not to think of this as “overpaying.” The value is there, which has been made crystal clear by the fifteen other buyers who are offering similar amounts. If you try to sell too soon, you may see some short-term losses. Remember, appreciation takes time. Be patient, positive, and prepared!
Given the recent growth of Huntsville, what changes do you anticipate in the housing market within the next 2-3 years?
While the market will continue its slow crawl back toward a more balanced market, I don’t think we should expect anything drastically different as far as the level of competition. Prices will continue to rise, but likely not at the same pace we’ve seen over the past year. Investors (including some institutional heavy hitters) will continue their focus on the Huntsville area, which means owner-occupant buyers will need to continue sharpening their offers with creative terms.
Are there any real estate related trends you are noticing in the Huntsville market?
While luxury real estate sales in North Alabama have already outpaced previous years, we see this section of the market returning faster to pre-COVID conditions, than the more affordable price points. Although still very competitive, we see the window of opportunity for sellers of $1M+ properties to enjoy bidding wars and above-list price offers getting smaller.
Amanda otieno
Owner/Broker
Design Realty Solutions
amanda@designrealtysolutions.com
How would you describe the current housing market in the Huntsville Metro Area?
You’ve probably heard this a million times by now, however, this market is hot and I don’t see it cooling off any time soon. With inventory low (although I do see trends shifting a bit), this is a seller’s market. It’s a win for investors as rental rates in the city continue to grow! It’s an exciting, and hectic, time to be in real estate for sure!
What advice would you offer sellers in this market?
I meet with sellers all the time who are ready to sell because they have gotten wind how much equity they have in their home and they are ready to capitalize! While I love being the broker who helps them with this process I do remind them it’s important to strategize their next moves together before we are ready to list. With the right marketing, staging, and team your home will sell fast and for top dollar in this market but I want to make sure sellers have a plan for future housing if they are sticking around Huntsville Metro area since inventory is so low!
What advice would you offer buyers in this market?
Patience and good representation is key! Find a good brokerage to assist you with every step and be ready to move if you see something you love. Unfortunately, we don’t have the luxury to sleep on things for a few days anymore; so be open to the demands of this market and be willing to get creative with your realtor to strategize ways to make your offer stand out and win. Most importantly, I want buyers to not give up. Home ownership is worth it, so stay in the game until you get your dream home!
Given the recent growth of Huntsville, what changes do you anticipate in the housing market within the next 2-3 years?
For the past ten years, there has been a steady rise in Huntsville’s population. With the economic growth we continue to see, I anticipate Huntsville continuing to be a great place to invest in real estate. This housing market is very strong and I believe it will maintain its upward trajectory in the coming years.
Are there any real estate trends you are noticing in the Huntsville Market?
The pandemic has led many home owners and first time home buyers to re-asses their needs and desires in a home; which makes sense because we have all been spending more time at home. That being said, home owners are creating spaces, both interior and exterior, that are more conducive to overall happiness and well being! As a designer, that’s a trend I love to see! I’ve been enjoying helping client envision, create, and invest in spaces that they can really truly enjoy!
Lore Hislop
Realtor, Broker Associate
Averbuch Realty Co. Downtown
lorehislop@gmail.com
How would you describe the current housing market in the Huntsville Metro Area?
A Unique, challenging and exciting sellers market is how I describe this current market! I have been a Realtor representing sellers, buyers, & investors for about 14 years with Averbuch Realty Downtown and I personally have never seen a market like this. Buyers are really feeling the pressure, but the good news is that compared to many cities across America we are still very affordable and there are some great options if you seek them and are prepared through your buyers agent to jump on the right one.
What advice would you offer sellers in this market?
Find a Realtor that represents your interests and truly understands this challenging market. Lisintg agents have to deal with how to balance mulitiple offers for their sellers and that can be challenging. So it is important that your Realtor understands the ins and outs of that process. Also I would encourage sellers to also be prepared to have their next home lined up or a good plan on where to go next because their home may sell very quickly. I like to go help figure out a Plan A and Plan B and sometimes a Plan C for my clients.
What advice would you offer buyers in the current market?
So for buyers I have a few pointers. 1) Make sure you have a buyers agent that can set you up for success with getting pre approved early so you are ready to make an offer 2) Stay communicative, Communication with your real estate broker is super important especially in the digital world we are in. For example, if you get a notifications of a new listing you have been watching on your favorite app or website, text/call/email your agent right away to let them know so they can get information on that property. It can be frustrating for all involved if you wait because the market is moving so fast. Imagine this norm that we are dealing with these days…. you go see the property but it already has numerous offers and you feel behind before you get started & you have wasted your time and your Realtors time. 3) Stay patient but vigilant 4) Trust your buyers agent and let them guide you to success!
Given the recent growth of Huntsville, what changes do you anticipate in the housing market within the next 2-3 years?
Well the last 2 years we have seen 12% 2019-2020 and 14% 2020-2021 year over year growth. I anticipate continued growth in all directions of our county. Over the last 15 years I have watched Huntsville growth in just certain areas, but our current growth trajectory is in all directions which is exciting and new for us. I believe that for Huntsville/Madison Area we will see a continued appreciation year over year for the next 3 years. I believe by year 5 we will start seeing things level out in our area. This is of course is the best guesstimate based on what the current trends show. I am a total nerd and have always loved statistics since my days as UAH and that hasn’t stopped. I really enjoy studying real estate stats and sharing those reports with my clients. I am excited about the growth we are seeing in our great city.
Glinda Clardy
Listing Partner
Amanda Howard Sotheby’s International Realty
glinda@amandahoward.com
How would you describe the current housing market in the Huntsville Metro Area?
Brisk! We are so blessed to live in a city with such progressive community & elected leadership. 10 years ago there were only 2-3 highly sought after neighborhoods/areas that buyers were clamoring to live in; now we have more than a dozen that attract families based on their lifestyle and interests. These new planned communities have helped ease the shortage of homes that we have experienced over the past 12 months.
What advice would you offer sellers in this market?
Staging & photography are still extremely important when buyers look at your home, especially for relocation clients, make the repairs your agent suggests. The pictures are your first “showing” and along with price is a deciding factor on whether a buyer chooses to move forward with an in -person showing. If the home is empty, ask your agent about virutal staging – this makes the rooms stand out and helps the buyer see how they could possilby place their furniture, it is relativley inexpensive to do and well worth it.
What advice would you offer buyers in the current market
If you are a first time buyer, meet with a mortgage lender about 3 months prior to when you want to move, they will be able to give you a clear idea of how much home fits into your budget and give you a gameplan if there are some items you need to work on.
Given the recent growth of Huntsville, what changes do you anticipate in the housing market within the next 2-3 years?
We anticipate steady growth because of the many industries that we have moving in over the next 5 years.
Are there any real estate related trends you are noticing in the Huntsville market?
Home offices have become the top requested amenity for buyers, previously an existing home office would be converted to a guest bedroom, playroom or a “catch all” room. 2020 definitely changed that!
Chanda Davis
Broker/Owner
Chanda Davis Real Estate
Chandadavis0@gmail.com
How would you describe the current housing market in the Huntsville Metro Area?
The current housing market in the Huntsville Metro Area is beyond unbelievable. In over 20 years of practicing real estate, I have never seen bidding wars at this level of competition. The real estate market is limited of supply but the demand is extremly high, which is driving prices higher. In the state of our current supply shortage, builders are having a difficult time with completing construction in a timely manner- which creates a even higher need for property. I have been in business for three years and each year, our company’s production doubled from the previous year. So, real estate is great in Huntsville, the #1 city in Alabama!
What advice would you offer sellers in this market?
This a true seller’s market- demand is high and supply is low! Huntsville is the #1 City in Alabama and we are growing in numbers each day as business are moving to the city. With more businesses, comes the need for more housing. Therefore, the advice that I would give a seller is to make sure that the home is well-maintained and prepared to hit the market. This is almost a guarantee for multiple offers, especially if the home is priced right. If sellers plan on moving within the city, it is important to have made arrangements for their next move in such a competitive market, the seller doesn’t want to be left without a new home to venture to. But, sellers should be prepared to be strong negotiators and be sure to hire a REALTOR who is skilled in analyzing numbers- one who understands the importance of getting the highest possible return for the seller.
What advice would you offer buyers in the current market?
Buyers’ offers are being beat out by cash offers- so the advice that I would give buyers in this market is to SAVE-SAVE-SAVE! Buyer’s need to be prepared to not only pay the down payment, but also to pay some or all of their closing cost. There was a time when closing costs were negotiated between the buyer and the seller, but within the last year 90% of the contracts flowing through Chanda Davis Real Estate showed buyer paying 100% of their closing costs. Buyers should focus on improving their credit scores and paying off as much debt as possible before considering purchasing a new home. Goverment funded loans such as FHA and VA are not as impressive compared to conventional loans and CASH deals. Buyers need to be prepared for disappointment and not be quick to give up in their home search and bidding, because the first, second, or third offer maynot be the selected one.
Given the recent growth of Huntsville, what changes do you anticipate in the housing market within the next 2-3 years?
Mortgage rates are at record lows, so I think that the market will continue to be robust in terms of demand. The market has been extremely competitive but with society normalizing after the pandemic, sellers are feeling more comfortable with selling. I think the home market will become more favorable for buyers as we continue to normalize.With increased supply of housings housing inventory, pricing will also begin to normalize. Our prayer is that bulk building material with cease in the excessive increasing of pricing. Affordability is still a major factor in home ownership.
Are there any real estate related trends you are noticing in the Huntsville market?
There are a few real estate related trends that I have noticed in the Huntsville market. The first, homes do not remain on the market long and usually will sell for at least 2% or greater over list price. Even contingencies have shifted: appraisals are waived, home inspections are for informational purposes only, property purchased with escalation clauses, and property is sold as-is and without seller concessions. Cash offers from investors often beat out buyers who are in search for property in the range of $200,00 and under. Investors usually purchases property sight unseen, with a cash offer, and a guaranteed closing within two weeks. Well, if you are a seller, that’s a no-brainer if having to decide on which offer to accept.
Brenda Elliott
CEO, Broker, Owner
Weichert, Realtors – The Space Place
brenda.elliott@weichert.com
How would you describe the current housing market in the Huntsville Metro Area?
The current housing market in the Huntsville and North Alabama market is experiencing a Seller’s market (less than 4 months sale time) up to $800,000 and a normal market (4-6 months sale time) over $800,000. That means that the law of Supply and Demand at this point favors sellers. Does it mean that this is not for buyers to purchase a home? No! The best time to buy is today. The second best time is tomorrow morning! With the supply of inventory being lower than the buyer demand and numerous buyers moving in to the area, prices will continue to rise for several years. As prices and interest rates rise, the housing affordability will decline, so now is the time to purchase.
What advice would you offer sellers in this market?
Although this is a Seller’s market, as with any market, Sellers should make certain that they enter the market at the right price and with the best condition possible. Sellers will always realize more profits if priced at market value with several competing offers rather than priced above market value hoping for that one buyer that will finally put in an offer. Competition will drive the price up if it is properly priced to begin with. The other consideration for sellers is condition. There is a price for every condition, but to get the highest price possible, condiition must be addressed. Many buyers today want to move right in and start enjoying their new home instead of doing any repairs or redecorating. To properly address these decisions, consult a real estate professional that is familiar with the area and type of property you are selling.
What advice would you offer buyers in the current market?
Buyers need to be aware that prices are continuing to climb. Nationally it is projected that prices will end the year being up about 21% over 2020. Last week Goldman Sachs put out their predition for 2022 prices to rise about 16%. Typically as inflation rises, so do interest rates, so the best time to buy is now before both prices and rates rise further. Buyers also should realize that they may have to pay over list price or may have to make a concession on contingencies because accepted offers are frequently not contingent upon appraisals or home inspections. Buyers should understand to “win” the home of their dreams, their offer needs to be the best one they can submit.
Given the recent growth of Huntsville, what changes do you anticipate in the housing market within the next 2-3 years?
The growth that the Huntsville and North Alabama market has experienced in the last 3-4 years will continue in the next 2-3 years and beyond. New construction has not kept up with demand since about 2009 and the largest buyer populations (Millenials and Gen Z) have just entered the marketplace and Boomers are not yet finished moving around. According to a briefing by Edsel Charles, who studies all major markets in the country, it will be 5-7 years before our local builders can catch up with today’s demand in new construction. With the previously mentioned age groups comprising active buyer pools, transferees moving into the market, and people from other parts of the country moving here due to the good press this area has enjoyed, the law of Supply and Demand says that prices will continue to climb for years to come.
Are there any real estate related trends you are noticing in the Huntsville market?
One interesting trend that is emerging due to Covid is that purchsers need defined spaces for working privately, instead of the completely open floor plan. The recent pandemic has shown that when more than one person is working from home while others are playing or going to school at home, the open floor plan tends to get noisy. Buyers are looking for spaces not only to work privately, but also additional space to be outside to play. This trend will probably continnue until the Pandemic is nothing more than a dim memory.
