Illustrate Sluggish Market

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ments and making it difficult, if not impossible, for many to secure financing to purchase real estate.

Additionally, many wouldbe sellers are holding on to their property to wait out the freeze, keeping prices from declining too quickly. The average price of a single-family unit hovers at $327,000. This is still lower than the national average of $454,900; what remains to be seen is if the Huntsville real estate market will buck the projected price decline economists expect to see nationally over the coming year.

Taylor Marr, Deputy Chief Economist for the Seattle-based real estate firm Redfin, predicts a national decline in sales of 16% over 2023, writing that “People will only move when they have to.”

With that said, it is unlikely that the housing market will crash 2008-style. Writing for MarketWatch, LendingTree senior economist predicted that “Home prices won’t necessarily fall everywhere, but a combination of relatively high rates and weak homebuyer demand will likely push down prices nationwide in 2023. While a 5% and 10% drop may seem steep, declines this year are unlikely to wipe out the home price gains many houses saw over the past few years.”

As long as financing a home remains out-of-reach for many households, rent will continue to be high. According to realtor. com, the national rent average increased 3.4%, to a national average of $1,712 per month.

Here in Huntsville, the average rent stands at $1,151 per month. For the average individual in Huntsville, the yearly income is $30,854.

The average individual spends nearly half their income on rent, with many spending more depending on variations on income and rental prices.

This has ramifications across the economy, as discretionary spending is squeezed out by necessary expenditures for housing, vehicular costs, healthcare, and other such costs of living.

It is unlikely that the market will pick up much before spring, barring any unforeseen developments. The Huntsville Business Journal will continue to monitor the housing market, both nationally and here at Huntsville, and keep our readership informed. w