Birmingham February home sales up 5 percent over the same period in 2015
Birmingham has the highest salaries of large metros when adjusted for the cost of living, a new report finds. (file)
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 924 units during February, 46 units or 5 percent above the same time last year. Two more resources to review: Quarterly Report and Annual Report.
For all of the Birmingham area’s housing data, click here.
Forecast: February sales were 1 percent or 10 units below our monthly forecast. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through February projected 1,687 closed transactions while the actual sales were 1,695 units, a favorable difference of 0.4 percent.
Birmingham home sales in February rose 5 percent over the same period in 2015.
Supply: The Birmingham area housing inventory in February was 5,773 units, a decrease of 11 percent from February 2015 and down 51 percent from the February peak in 2008 (11,919 units). February inventory in the Birmingham metro area also decreased 8 percent from the prior month. This direction contrasts with seasonal patterns and historical data indicating that February inventory on average (2011-15) increases from January by 3 percent.
According to the Greater Alabama MLS, the Birmingham metro area market, there was 6.2 months of housing supply during February, down favorably from 7.4 during February 2015. Months of supply decreased favorably from January (8.2 months of supply). 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 February.
Demand: February residential sales increased by 19.8 percent from the prior month. This direction is consistent with historical data indicating that February sales, on average (2011-15), increase from January by 19.8 percent.
Existing single family home sales accounted for 82 percent (down from 87 percent during February 2015) of total sales while 14 percent (up from 14 percent in February 2015) were new home sales and 4 percent (up from 1 percent in February 2015) were condo buyers.
Pricing: The median sales price in February was $171,000, an increase of 5 percent from last February ($162,000). The February median sales price also increased 4 percent from the prior month. This direction is consistent with historical data (2011-15) indicating that the February median sales price on average increases from January by 3 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: “Our February results show the most modest consumer home price expectations since late 2012,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “For consumers who think it’s a bad time to buy a home, whose share has trended up from its recent low last November, high home prices have been an increasingly contributing factor. A slower pace of home price appreciation may provide some relief for potential homebuyers, especially first-time buyers who couldn’t reap the benefits of selling a home at high prices to buy another one.” For the full story, click here.
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.
