Local housing bouncing back

For Oscar Gonzales, the details are in the data. Gonzales, 46, became CEO of the Huntsville Area Association of Realtors in October, a position that has him analyzing the area's current market conditions and guiding the association's 2,000-plus members through some of the local market's most challenging days.

In addition to leading the Huntsville association, Gonzales is also founder and managing partner of the Gonzales Group, a multicultural marketing firm based in Houston. With more than 20 years of experience in the real estate and business fields, he is recognized as one of the nation's leading experts in housing and related industries. Gonzales recently shared his perspective on the current housing market with Times business writer Gina Hannah. The interview has been edited for space and clarity.

You've been in Huntsville about six months now. What about this community and this market has surprised you the most?

It's not so much of a surprise but an affirmation of how sound the overall economic and housing segments are. We are very fortunate to live here in Huntsville/Madison County. While we are not totally sheltered from the economic downturn, we are certainly in a much better position than most.

What I have enjoyed the most is how friendly and welcoming everyone has been. Huntsville is such a warm and inviting community ... you become part of the family right away.

The Madison County market saw a nearly 20 percent increase in sales between February and March. How much of that is seasonal and how much a possible comeback for the market?

I would say that 50 percent of it is seasonal and the other 50 percent is continued growth. The market has certainly continued on an upward trend from the dip it took prior to the presidential election in 2008.

The majority of homes sold during the past few months have been in the under-$200,000 price range. Does this reflect more first-time buyers taking advantage of the federal tax credit?

Not necessarily. While first-time home buyers make up a growing segment of the home buying market, it makes up a small percentage of the overall home buyers with some that are also taking advantage of the low interest rates and affordable housing. I will say that first-time home buyers are an important consumer segment. Their home purchase leads to additional spending especially when it comes to household goods such as furniture, lawn equipment, appliances, etc. There is a cascading economic effect that first-time home buyers provide.

Your background is in multicultural marketing. How have you drawn from that knowledge here in Madison County?

According to the Census Bureau, Madison County is 71 percent white non-Hispanic. Like most of the U.S., Madison County is showing an increase in its multicultural population base. For example, the Hispanic population is expected to grow by 23 percent between now and 2013 and the Asian population will grow by 17 percent during that same time period. The white population in Madison County, like most of the country, shrank by 1.16 percent between 2000-2008 and is expected to shrink by another 0.73 percent by 2013. Madison County has always been one of the most diverse areas of the state and that tends to put new arrivals to the area at ease.

You moved to Huntsville from Houston. How do the two markets compare?

I have always thought of Huntsville as a micro version of Houston. They are similar in that both have a diverse industry and economic base represented in the community. Home prices and affordability are also remarkably similar. What is not similar is the traffic. ... I'll take Huntsville traffic and commute time any day.

What are you hearing from colleagues in Houston about the market there right now?

Houston is experiencing a more dramatic slowdown in home sales and increase in foreclosures. Some of which can be attributed to the drop in the price per barrel of oil and the economic ramifications that go along with that.

The Case-Shiller Index of 20 major cities this week showed that the drop in prices has slowed. How closely does the Huntsville market follow trends in these larger markets?

Huntsville never really experienced the drop in prices that the major cities represented in the Case-Shiller index did. We have consistently shown price appreciation between 1 to 5 percent and continue with that trend which is counter to what most of the Case-Shiller index cities have experienced.

What parts of Madison County are seeing more sales right now?

Sales vary from area to area and are influenced by a lot of different factors including buyer preference, lifestyle, price of home, etc.

What are Realtors in the association here telling you about their clients - are they families looking at schools, empty nesters looking for convenience, a mix?

Schools really dictate a lot of home buying decisions especially in an area like Huntsville/Madison County where the median age is 37 (and) that have young families. What we find is that a city address is not always a determining factor, especially for recent arrivals. Education and quality of life are the real motivators. Huntsville/Madison County also has a lot of retirees/empty nesters, whose lifestyle is easily accommodated with the mix of communities that Madison County provides. To answer your question, it is definitely a mix of the two.

OK, pull out your crystal ball for a minute. When do you see the Huntsville-area housing market recovering?

I believe the market is already recovering. When inventories contract, days on market decline, and prices appreciate you have a housing market that is healthy and on the way up - Huntsville/Madison County is so there.