Early November Update: Much has happened since our September report. The previous data and predictions continue to be true. Home prices inched up in the Huntsville market about 1 percent in the last quarter, but sales have fallen dramatically and building permits are also down. This is an indication that prices will stagnate in the short term. Sales below $450,000 continue to be strong but sales between $450,000 and $1,000,000 have shown decline. The market above $1,000,000 is surprisingly strong and has the lowest level of inventory on the market out of all the ranges above $350,000. Interest rates have not stabilized and are bouncing between 5.75 and 6.5% in the last month. They are hovering around 6% at the moment. This is a sign of the market trying to understand the housing risk on the national scale.
At the end of November, mortgage rate plumeted to 5.125%! This is the lowest rate in my lifetime. Huntsville was also identified in natioanl publications for having the 12th best housing market in the nation. Same house sales in the Huntsville market show: 0.51 percent increase the the 3rd quater 2008, (or just over 2% annually) 4.12% in the last 12 months, and 31.51% in the last five years
One the Job Market, Huntsville was identified as one of the top five job markets in the nation to ride out an economic down turn. See the article at http://www.msnbc.msn.com/id/27892494/
Ben Neighbors, Custom Home Builder in Huntsville Alabama