What's the Housing Market Like in Decatur, AL
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Prices | Trends | 2022 Forecast
Decatur's borders expand into two counties, Morgan County and Limestone County. It is nicknamed as “The River City” as it sits along the banks of Wheeler Lake and the Tennessee River. The 2016 census records Decatur as having 55,419 residence. Recent numbers have shown the growth of Decatur as being stagnant but lately, with the growth of nearby Huntsville, Decatur home sales are starting to pick up at a fast pace.
Decatur is the busiest river port on the Tennessee River and boast twelve Fortune 500 companies who operate their plants at or near the river ports. Manufacturing makes up about 20 percent of the jobs but many professionals who live in Decatur commute to Huntsville, a short 30-45 minute drive.
For those who have not visited Decatur, the historic neighborhoods and downtown area along with Cook Museum of Natural Science, Point Mallard Park and Wheeler National Wildlife Refuge is a must see. Decatur also offers two popular and free events each year, the Alabama Jubilee Hot Air Balloon Fest which is held at Point Mallard Park every Memorial Day weekend and the Corn Day Festival which is hosted each July.
With the current interest rate hike, the falling stock market and downturn in the economy, we are headed into a housing market correction. While Huntsville’s economy is thriving with a strong outlook for the near future, our housing market has slowed down compared to 2021. This is mainly due to external factors, such as the downturn of other local economies. With so many out-of-state employees wanting to make a transition to the Huntsville area, they are having a difficult time in selling their current house in their own state. This has trickled down and stunted our own housing market. We are now seeing an increase to our housing inventories, both in new and existing homes which is great news for home buyers but not so for the sellers. With this said, buyers are now qualifying for much smaller loans due to the rising interest rate. This has shifted more buyers to in purchasing homes closer to the 200’sand 300’s price range.
In a nutshell, demand for both existing homes and new construction has dropped due to the market conditions and rising interest rates, but overall, we are doing much better than most cities in the country. The U.S. News and World Report has rated Huntsville as the #1 place to live. This is due to our strong job market and quality of life. While our housing market may not be as robust as in 2021, it is a good market to buy and invest. Supplies and inventory are now coming out of their historical lows and seems to be adjusting to a normal market, if not slightly towards a buyer’s market.
I have listed below several interactive maps, displaying current prices, trends, and inventory of homes in the Decatur area to help you better understand our market.
Median Sales Price
The median sale price is the sales price in the middle of a data set when you arrange all the sale prices from the low to the high, unlike the average sale price which is calculated by adding all the home sales in a particular area during a defined period then dividing that total by the number of properties sold. Usually the local MLS will calculate the average sales price, while the median sales prices are the sale prices in the middle of the data when you arrange all the sale prices from low to high. The median sale price represents the figure at which half of the properties in the area sell at a higher price and the other half at a lower price. When using median, just remember “middle”. Although this may seem confusing, it is best to use both averages, median and average when selling your home and to help determine an estimated listing price.
Days on the Market
Another great tool used by realtors to sell your home is calculating the median number of days on the market. Realtors also use this number to help determine if the buyer should be aggressive on making a bid on an existing home. Generally, the longer a house sits on the market or listed on the multiple listing services (MLS), the bigger the discount a home may sell for. The opposite is also true, the shorter the days on market, the more aggressive buyers tend to be, thus allowing for higher prices.
Homes for Sale
The amount of homes for sale is a good indicator how stressed or healthy the housing market is. The more houses to choose from, the better it is for buyers. A low housing inventory means that buyers can increase their price as the competition for homes are much lower. Sellers can be a lot more aggressive in their asking prices if the housing inventory is low but must factor in selling the home at or below the appraisal price if the buyer is getting a mortgage loan.
Price Per Sqft
Price per sqft is a great tool to determine how much a seller should list their house for. In some cases, this can be misleading as homes in certain neighborhoods and school districts can determine the average cost of the home. The age of the house and amount of new or improved amenities can also determine the sale price of the seller’s home. Realtors will also use price per sqft when looking into new construction or trying to pinpoint a certain price in a particular neighborhood. This, along with housing comps (recently sold homes similar to your own house) helps determine a good selling price point.
Months' Supply of Homes for Sale
When investors research housing market trends, one of the best indicators to determine if the local housing market is trending towards a buyer's or seller's market, is the inventory of homes for sale. An even housing market, meaning a market that is neither a seller's or buyer's market but both trending the same, is having a 6 months’ supply of homes. When the number trends lower than 6 months, it is a seller's market. The opposite is true when the months’ supply for homes for sale trends above 6 months - it is a buyer's market.
Summary
As we enter the year 2022, Decatur is shifting to an even market. If you are a seller and are looking to move out of the area, now is the time to sell. For those who are looking to relocate or wanting to move into a larger home or downsize, I can help you too. I am both a listing agent and home buying expert. Check out my website to see my latest and current sales and reviews.
Any question or need further information? Send me a note.
For those who are interested in buying or selling a home, as a realtor with Legend Realty, I can help you with all your real estate questions or needs.
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Huntsville Valley MLS (by City)
Moving or Relocating the Huntsville Area? Check out the Huntsville's housing market. Jennifer Gates (256-755-4989) with Legend Realty.
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