Click here to view or print the entire October report compliments of the ACRE Corporate Cabinet.

Sales: According to the Greater Alabama Multiple Listing Service, the Birmingham metro area* residential sales totaled 1,016 units in October, six units or 0.6 percent above the same time last year. Year-to-date residential sales increased by 6.7 percent from the prior year. Two more resources to review: Quarterly Report and Annual Report

Forecast: October sales were 0.3 percent or three units above our monthly forecast. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through October projected 11,371 closed transactions while the actual sales were 11,487 units, a positive difference of 1 percent.

Birmingham year-to-date residential sales rose 6.7 percent in October compared to the same period last year.

Supply: The Birmingham area housing inventory in October was 7,275 units, an increase of 5.5 percent from October 2014 but down 46 percent from the October peak in 2007 (13,438 units). October inventory in the Birmingham metro area also decreased 3.3 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that October inventory on average (2010-14) decreases from September by 2.4 percent.

According to the Greater Alabama MLS, the Birmingham metro area market, there was 7.2 months of housing supply in October, up slightly from 6.8 in October 2014. This realignment of inventory is even more impressive when compared to its October peak of 18.5 months in 2010 and the 5-year average of 10.8 months from 2010-2014. The “months of housing supply” is a simple calculation – homes listed (supply) divided by homes sold (demand). In general, about 6.0 months is considered the point of equilibrium during October (NSA). At the current sales pace, Birmingham is increasingly favoring sellers.

Demand: October residential sales decreased by 15.8 percent from the prior month. This direction is consistent with historical data indicating that October sales, on average (2010-14), decrease from September by 12 percent.

Existing single family home sales accounted for 87 percent (up from 84 percent  in October 2014) of total sales while 10 percent (down from 12 percent in October 2014) were new home sales and 3 percent (down from 4 percent in October 2014) were condo buyers.

Pricing: The median sales price in October was $167,500, an increase of 1.5 percent from last October ($165,000). The October median sales price also decreased 1.5 percent from the prior month. This direction is consistent with historical data (2010-14) indicating that the October median sales price on average decreases from September by 5.4 percent. Pricing can fluctuate from month to month as the sample size of data (closed transactions) is subject to seasonal buying patterns. Consulting with a local real estate professional who has access to pricing data at the neighborhood level is recommended.

Industry Perspective: “Despite recent headwinds, which likely will slow economic growth compared to the first half of 2015, we see positive trends for consumer spending and housing heading into the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “Strong home price gains should help drive an increase in household net worth again in the third quarter, and, combined with low gasoline prices and mortgage rates, should support strong consumer spending throughout the rest of the year.” For full report click here.

The average sales price in Birmingham during October has been on the incline since its 2011 trough of $152,926.

The average days on the market declined to 76 during October.

Birmingham supply has remained steady, with a slight decline over the past four years.

The median sales price in Birmingham has a new October peak of $167,500.

Months of supply went down favorably compared to last year but still above 7.0.

Sales remain above 1,000 units during October in Birmingham.

Unit sales 80.5 percent higher than the 2010 trough of 563 units sold.

The Birmingham Residential Monthly Report is work product developed in conjunction with the Greater Alabama MLS and the Birmingham Association of REALTORS to better serve Birmingham metro area consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current residential data available. Real estate is local and statistics will fluctuate between areas within a city including subdivisions, and ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.