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

Sales: According to the Greater Alabama Multiple Listing Service, the Birmingham metro area* residential sales totaled 1,006 units during December, 54 units or 6 percent above the same time last year. Year-to-date residential sales increased by 6 percent from the prior year. Two more resources to review: Quarterly Report and Annual Report.

For all of the Birmingham area’s housing data, click here. 

Birmingham home sales during December held steady at 1,006 units sold for the month.

Forecast: December sales were 0.5 percent or five units above our monthly forecast. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through December projected 13,333 closed transactions while the actual sales were 13,295 units, 0.29 percent lower.

Supply: The Birmingham area housing inventory in December was 6,677 units, an increase of 1.7 percent from December 2014 but down 47 percent from the December peak in 2007 (12,642 units).December inventory in the Birmingham metro area also decreased 5.3 percent from the prior month. This direction is consistent with seasonal patterns and historical data indicating that December inventory on average (2010-14) decreases from November by 2.7 percent.

According to the Greater Alabama MLS, the Birmingham metro area market, there was 6.6 months of housing supply during December, down favorably from 6.9 during December 2014.It is also down favorably by 25 percent (8.8 months of supply) from the prior month. The “months of housing supply” is a simple calculation – homes listed (supply) divided by homes sold (demand). In general, about 6 months is considered the point of equilibrium during December.

Demand: December residential sales decreased by 25 percent from the prior month. This direction is consistent with historical data indicating that December sales, on average (2010-14), increase from November by 6.5 percent.

Existing single family home sales accounted for 81 percent (up from 80 percent during December 2014) of total sales while 15 percent (down from 17 percent in December 2014) were new home sales and 4 percent (up from 3 percent in December 2014) were condo buyers.

Pricing: The median sales price in December was $175,000, an decrease of 3 percent from last December ($180,000). The December median sales price also increased 0.1 percent from the prior month. This direction contrasts with historical data (2010-14) indicating that the December median sales price on average decreases from November by 2.2 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: “Consumers ended the year on an improved note with regard to their income, job security, and overall economic outlook. This more positive consumer sentiment brought the HPSI up a few points, moving the index up for all of 2015,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Brightening economic prospects, if sustained, should stimulate demand for homeownership. However, continuing upward pressure on rental prices and constrained housing supply, particularly for starter homes, may mean prospective first-time homebuyers could face affordability constraints.” For full report click here.

The average home in Birmingham during December sold for $209.005.

On average, homes sold in Birmingham during December were on the market for 77 days.

Inventory rose slightly by 2 percent compared to last December in Birmingham.

The median sales price in Birmingham during December was $175,000.

Months of supply shows a more balanced Birmingham market during December at 6.6.

Year-to-date home sales in Birmingham were up 6 percent over last year.

Home sales in Birmingham reach 1,006 during December.

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.