How is The Huntsville Alabama Real Estate Market in 2019?
If you are looking at buying a house in Huntsville AL real estate market as a potential investment opportunity, you must read till the end. Huntsville is located in Madison County, AL. The population is 183,076, making Huntsville the largest city in Madison County and the 3rd largest city in the state of Alabama. It is part of a five county combined statistical area that is home to nearly 700,000 people. It has the nickname “Rocket City” for its close ties to NASA.
Huntsville, AL, known as ‘The Rocket City’, has seen some great progress in various areas of the city in recent years. Let us take a look at the “Real estate market data for Huntsville AL” from various sources so that you can stay up-to-date with trends in the Huntsville real estate market. Although, this article alone is not a comprehensive source to make a final investment decision for Huntsville, Alabama, but we have figured out top 10 reasons for you to consider investing in the Huntsville Al real estate in 2019.
Huntsville Al Real Estate Market Forecasts 2019 & 2020
The median home value in Huntsville is $153,300 on Zillow.com. Huntsville home values have gone up 3.8% over the past year and Zillow’s Huntsville Al real estate market prediction is that the prices will rise 0.9% within the next year. The median list price per square foot in Huntsville is $107, which is higher than the Huntsville Metro average of $105. The median price of homes currently listed in Huntsville is $261,740 while the median price of homes that sold is $171,500. The median rent price in Huntsville is $1,000, which is lower than the Huntsville Metro median of $1,150.
According to LittleBigHomes.com, the Huntsville AL real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Huntsville real estate market trend prediction is 83%. Accordingly, they estimate that the probability for rising home prices in Huntsville is 83% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Huntsville Housing Market Forecast 2019 – 2021
The Huntsville housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Huntsville housing market trend prediction is 82%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Huntsville is 82% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Huntsville AL Real Estate Market Forecast.
Huntsville Al Real Estate Market Trends
Huntsville real estate market trends indicate an increase of $500 (0%) in median home sales and a 1% rise in median rent per month over the past year. The average price per square foot for this same period rose to $96, up from $90. Trulia has 742 resale and new homes for sale in Huntsville, AL, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Huntsville for Mar 1 to May 29 was $173,000 based on 823 home sales. Average price per square foot for Huntsville was $96, an increase of 7% compared to the same period last year. The median rent per month for apartments in Huntsville for May 4 to Jun 4 was $1,000.
Data by Redfin.com shows that the Huntsville housing market is somewhat competitive. The average sale price of a home in Huntsville was $230K last month, up 14.9% since last year. The average sale price per square foot in Huntsville is $103, up 6.2% since last year. Some homes get multiple offers. Homes in the Huntsville housing market sell for about 1% below list price and go pending in around 53 days. Hot Homes in Huntsville can sell for around list price and go pending in around 29 days.
Huntsville Housing Market Statistics
- Average Listing Price: $173,000 (Trulia)
- Median Rent Per Month: $1,000
- Price Per Sqft: $96
- Median Household Income: $45,167
- Home Owners: 71%
- Single Residents: 38%
- Median Age: 39
- College Educated: 37%
- Transportation: 99% people commute by car
There are 822 homes for sale in Huntsville, ranging from $6K to $11.9M on Realtor.com. 73 of which were newly listed within the last week. Additionally, there are 240 Huntsville rental properties, with a range of $355 to $3.1K per month.
According to Movoto.com statistics, the median list price in Huntsville is $291,450. The median list price in Huntsville was less than 1% change from May to June. Huntsville’s home resale inventories is 550, which increased 0 percent since May 2019. The median list price per square foot in Huntsville is $107. May 2019 was $106. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June.
Huntsville, AL Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Huntsville, AL is $179,294, which indicates that home prices in Huntsville are below the average for most of the cities and towns in the U.S. Single family detached homes are the single most common housing type in Huntsville, accounting for 64.64% of the city’s housing units.
Other types of housing that are prevalent in Huntsville include large apartment complexes or high rise apartments ( 24.47%), duplexes, homes converted to apartments or other small apartment buildings ( 7.63%), and a few row houses and other attached homes ( 1.81%).
The most prevalent building size and type in Huntsville are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 55.59% owning and 44.41% renting.
Currently, there are 971 single family homes for sale in Huntsville, AL on Zillow. Additionally, there are 123 single family homes for rent in Huntsville, AL. Under potential listings, there are about 22 Foreclosed and 144 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a Huntsville’s multiple listing service (MLS).
Huntsville, AL Foreclosures And Bank Owned Homes 2019
The percent of delinquent mortgages in Huntsville is 1.0%, which is lower than the national value of 1.1%, according to Zillow. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Huntsville homeowners underwater on their mortgage is 12.1%.
- Foreclosures in Huntsville = 127 (RealtyTrac)
- Homes for Sale in Huntsville = 148
- Median List Price = $195,000 (0% ⇑ vs Mar 2018)
There are currently 127 properties in Huntsville, AL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 148. In April 2019, the number of properties that received a foreclosure filing in Huntsville, AL was 10% lower than the previous month and 39% lower than the same time last year.
Home sales for March 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Huntsville was $0. The median sales price of a foreclosure home in Huntsville, AL was $0, or 0% higher than non-distressed home sales.
Huntsville Home Prices And Real Estate Appreciation
Over the last year, Huntsville real estate appreciation rates have trailed the rest of the nation. In the last twelve months, Huntsville’s real estate appreciation rate has been 5.68%, which is lower than appreciation rates in most communities in the nation. In the latest quarter, the real estate appreciation rates in Huntsville were at 1.17%, which equates to an annual appreciation rate of 4.78%.
The above statistics on real estate appreciation in Huntsville were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Alabama, their data shows that Huntsville’s latest real estate appreciation rate is higher than 60% of the other cities and towns in Alabama.
Where Should You Buy Real Estate In Huntsville, Alabama?
There are 116 schools in Huntsville, AL. There are 38 elementary schools, 24 middle schools, 18 high schools and 36 private & charter schools. Huntsville has above average schools. There are 7 neighborhoods in Huntsville. Some of the best neighborhoods in or around Huntsville, Alabama are Lake Forest, Downtown Huntsville and Lincoln Mill District.
Huntsville is filled with various kind of neighborhoods that are popular and offer various amenities and opportunities. Most of the neighborhoods are more affluent than other parts of the state of Alabama, such as The Reserve and Providence.
The neighborhood trends have seen expansion in recent years with many of the educated demographic going into the workforce and purchasing family homes. Downtown Huntsville has a median listing price of $374.9K, making it the most expensive neighborhood. Merrimack District is the most affordable neighborhood, with a median listing price of $85,000.
Here are the 10 best neighborhoods in Huntsville to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest In Huntsville Real Estate In 2019?
Investing in real estate is touted as a great way to become wealthy. Is Huntsville rental property good for investment? Planning to invest in the Huntsville, AL real estate market? Many real estate investors have asked themselves if buying a property in Huntsville is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Huntsville housing market 2019 forecast for answers on why to put resources into this sizzling market. According to Homefacts statistics, there are 46 public schools in Huntsville with an average Homefacts rating of B-. The total crime rate for Huntsville is high, and there are 215 registered sex offenders residing in the city. Unemployment in Huntsville is moderate and the median home sales price is $145,053. Here are the top 10 reasons to invest in the Huntsville real estate in 2019.
1. Demographic Momentum
A housing market is stable if the population is stable in both numbers and buying power. Its long term outlook depends on birth rates, death rates, and migration rates. If young people are leaving for work, then in a few years, the housing market will start to decline.
If people are moving in to the area because of work, the housing market will see stronger growth unless housing supply is growing just as quickly. Huntsville has a population several years younger than average, and a disproportionate number of households here have children.
Given the area’s strong economy, they’re seeing people move in for work and their children staying. That alone bolsters the Huntsville Al real estate market long-term.
2. The Strong Economy
Huntsville’s strong economy also explains why Huntsville’s population growth has been grew about 5% between 2010 and 2015 while the nation as a whole only grew by 3.2%. Huntsville’s unemployment rate is less than 4%, more than a quarter less than Birmingham’s unemployment rate.
During the Great Recession that really only ended around 2016, Huntsville was an even better place to be. At the height of the Obama Recession, unemployment in Huntsville hit 9% but was 14% in Birmingham.
3. The Sheer Affordability
Housing affordability may seem like a reason not to invest in Huntsville Al housing. After all, why invest if many can afford to buy? In reality, about 20% of those living in the Huntsville Al real estate market are renting. This is a mix of military personnel, students, and those who cannot afford these relatively affordable homes.
The average home in Huntsville costs around $150,000. Homes cost around $100 per square foot, so a small starter home could cost significantly less. An investor could buy multiple affordable homes to rent out for the price of a median home in a West coast city.
4. The Hidden Luxury Market
“Rocket City” has long been home to a large high-tech workforce. This has created demand for luxury homes catering to them. Alabama’s most expensive zip code isn’t a tony neighborhood in Birmingham. No, it is 35213, the community of Mountain Brook.
The median home in this community is worth just under half a million dollars. Yes, that’s rivaling a small condo in New York or modest single family home in California, but it is incredibly expensive in a community where the median household income is less than $50,000.
This opens up the door to “affordable” luxury home investing, whether buying and flipping or buying to rent out to young executives only planning on staying for a year or two.
5. The Landlord-Friendly Climate
One perk of the Huntsville Al real estate market is how landlord friendly the area is. The return on your investment in the Huntsville Al housing market suffers if tenants don’t pay the rent for months and you face a costly battle to evict them.
Security deposits are limited to one month rent, but if they have pets, there is no limit on the add-on security deposit for pet damage. There aren’t limits on late fees, though if challenged in court, you’ll lose if they are unreasonable. Notice to terminate the lease is generally 30 days.
If the landlord doesn’t offer to renew the lease, the tenant is legally required to leave. There is a process for eviction that requires at least 17 days but likely longer. If someone violates the terms of the lease, they are limited to four “corrections” after which they can be evicted.
6. Investment Properties in Huntsville have Good ROI
The median rent for an apartment in Huntsville is around $1000 a month. When you factor in the premium charged for the privacy and space you get when renting a home, landlords charge much higher monthly rents for detached single family homes.
When combined with the relatively low price you can pay for properties, this yields a decent return on the investment unless you pay too much at the beginning.
7. Huntsville Is The Military Market
Any real estate market with a large number of enlisted personnel is going to be home to many renters, since military personnel don’t want to become long-distance landlords. Redstone Arsenal located just outside of Huntsville has been home to several departments simultaneously such as the Marshall Flight Center, the Missile Defense Agency, the Army’s Missile Command and a logistics wing.
That meant there were roughly 2000 permanently stationed personnel and ten times that many civilian contractors working at the site. The Defense Base Realignment and Closure Commission has moved some of these functions elsewhere, such as the ordinance school hosted here for a century moving to Fort Lee in Virginia.
Other functions, such as NASA’s Space Flight Center and Missile Defense wing, remained. This means that the number of military and military contracting jobs have declined but not gone away. It creates an excellent permanent class of renters for those investing in Huntsville Al housing.
8. A Fair Sized Student Market
A university is a goldmine for real estate investors, since students always rent. There are twelve colleges within fifty miles of Huntsville, Alabama. Alabama A&M, J F Drake State Technical College, and University of Alabama at Huntsville are located in Huntsville proper. The University of Alabama at Huntsville campus alone puts several thousand renters in the Huntsville Al real estate market.
9. The Growing Technology Research Sector In Huntsville
Huntsville’s early support for the space program resulted in a technology and research park here. Huntsville now has the second largest tech and research park in the United States. This attracts well-paid talent from around the world. Those relocating here for work tend to rent rather than buy since they may go somewhere else in a few years.
Others choose to rent for a while until they find the right home to buy. These high paying jobs also keep home values high in the Huntsville Al real estate market.
10. Huntsville’s Growing Biotech Sector
Huntsville has leveraged its significant technology base to cultivate a biotech industry. For example, the HudsonAlpha Institute for Biotechnology is but one biotech research facility in the four thousand acre Cummings Research Park.
This research hub rivals Research Triangle Park in North Carolina. It is R&D centers like that that explain why Huntsville has such a well-educated, well paid population. And given how many researchers move to follow the grants or upgrade their careers, many rent homes instead of buying them.
Whether renting or buying, these high paying biotech workers keep property values and rents high in the Huntsville Al real estate market.
Huntsville Alabama Real Estate Investment
Maybe you have done a bit of real estate investing in Huntsville, AL but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Huntsville real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Huntsville real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Huntsville, AL. The Huntsville AL real estate market is a solid market with long term potential, excellent opportunity at the moment, and market niches any investor could take advantage of.
How Is Huntsville Real Estate Investment?
Buying an investment property is different from buying an owner-occupied home. Our Huntsville investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Huntsville.
Huntsville Investment Properties For Sale ⇐ Click Here
Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in various growth markets.
We can help you succeed by minimizing risk and maximizing profitability. You can contact us for a “Free Strategy Session” by clicking here.
Best Places in Alabama To Invest In Real Estate
Another housing market in Alabama to go for diversifying your investments is the Birmingham Al real estate market. Birmingham, AL remains among the most affordable markets in the nation, which bodes well for homeowners, investors and renters alike. The median home in Birmingham, Alabama is around $60,000. It is incredibly stable and steady, and investors can purchase Birmingham investment properties for $80,000 to $100,000.
Birmingham AL real estate values are going up. For example, there was a 2014 median price increase of 12.8%. The current 3-year appreciation forecast of 10.6%. Note that this is simply appreciation of the asset’s value, not return on the investment in the form of rent. Capitalization rates up to 15.0% are being seen. Median rent in the Birmingham metro area rose 3.5% between 2000 and 2015.
Similarly, Montgomery, Alabama is another great market for investing in real estate for your retirement. Montgomery Alabama Real Estate Market is a strong cash-flow market due to strong demand for rental housing. And this is not entirely due to the 8 colleges and universities in the city. The cost of living here is 5% lower the U.S. average while there are a number of good paying jobs in the area.
The city has roughly 200,000 residents and has grown 7% over the past decades. That fact alone guarantees appreciation of existing real estate and continued demand for housing. Another factor to consider is demographics. Montgomery has a median age of 34.3 – many of its residents are starting or raising families, guaranteed to continue the population growth in the area even if the influx slows down. Expect Montgomery Alabama real estate to remain stable or increase in value as the next generation starts buying homes of their own.
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*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Home values https://www.movoto.com/huntsville-al/market-trends
https://www.zillow.com/huntsville-al/home-values https://www.realtytrac.com/statsandtrends/foreclosuretrends/al/madison-county/huntsville https://www.homefacts.com/city/Alabama/Madison-County/Huntsville.html
Hidden luxury market
Rent for August 7, 2018 was $975
Housing Market Data, Trends and Statistics