Most homes for sale in Madison County out of reach for workforce

The majority of homes on the market at the end of the third quarter of the year may be out of reach for many in the Madison County’s workforce.

According to Megan O’Hara with Urban Design Associates, families with the medium household income of $81,966 would only be able to afford a $250,000 home with a 20% down payment. And that’s with a mortgage payment of about $1,725.

The problem? According to the Huntsville Area Association of Realtors-University of Alabama in Huntsville Third Quarter Economic Report, only 136 homes listed on the market at the end of September were in the $250,000 or less price range.

Almost double that number, 261, were available in the upper affordable range of $250,000-$300,000. The median sales price for a home in the county according to the report was $331,705, down from $336,000 in the third quarter of 2022.

The silver lining is that the number of homes available continues to rise. The upper affordable range rose more than 91%. Homes in the $200,000-$250,000 range rose almost 43%.

“One thing that really cheers me is that $250,000-$300,000 price point is something that is consciously being built and looked at here so that lower tier housing receives a boost in a way that doesn’t happen in any other market I’ve been in,” said HAAR CEO Kurtis Krueger, who has worked in the Chicago and Austin, Texas markets.

“Inventory is up 91.5% in the $250,000 to $300,000, which is the price point that the median income can afford in our area,” realtor Matt Curti said. “This is a phenomenal accomplishment by our local builders as they’ve combated inflation and higher land prices to create more affordable housing options.”

He added the drop in median sales price showed the strength of the Huntsville market.

Inventory for all price ranges increased 20% over the previous year, with 1807 total listings, the highest number of homes available since January 2018.

The largest percentage increase came in the $250,000-$300,000 price range, but the price ranges with the most homes available were $300,000 to $350,000 (317) and $350,000-$500,000 (449).

“Inventory is still low,” Leading Edge Real Estate Group’s Tim Knox said during his October sales podcast. But he said prices were holding steady.

“Our market really is unique primarily because of the economy, the influx of folks moving here for work,” he said. “The demand is still high.”

Knox told the Lede in an earlier interview that affordable homes were still available, but homebuyers probably needed to be looking at a lesser home size.

But O’Hara said during a housing affordability lunch hosted by the Huntsville Committee of 100 that it might be difficult for young families, who would need more room for their children.

Months of supply did increase to 2.7 months, compared to 1.1 months in 2022, according to the report. That keeps it in a sellers’ market. According to Stuart Norton of the Alabama Center for Real Estate at the University of Alabama, supply needs to…