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 1,294 units during September, 7.3 percent above the same time last year. Year-to-date home sales through September rose 9 percent over the same period during 2015. Two more resources to review: Quarterly Report and Annual Report.

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

Birmingham residential sales during September rose 7.3 percent over the same month a year ago.

Forecast: September sales were 131 units or 11 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast projected 10,470 closed transactions, while the actual sales were 11,423 units, a favorable difference of 9 percent.

Supply: The Birmingham-area housing inventory in September was 6,975 units, a decrease of 7.2 percent from September 2015 and down 49 percent from the September peak in 2007 (13,560 units). September inventory in the Birmingham metro area also decreased 4 percent from August. This direction is consistent with seasonal patterns and historical data indicating that September inventory on average (2011-15) decreases from August by 5 percent.

According to the Greater Alabama MLS, in the Birmingham metro-area market, there were 5.4 months of housing supply during September, down 13.6 percent from 6.2 months of supply during September 2015. The months of supply increased from August (4.9 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 September.

Demand: September residential sales decreased by 13.7 percent from the prior month. This direction is consistent with historical data indicating that September sales, on average (2011-15), decrease from August by 5.7 percent.

Existing single-family home sales accounted for 80 percent of total sales, down from 85 percent in September 2015, while 17 percent were new home sales (up from 12 percent in September 2015) and 3 percent were condo buyers (unchanged).

Pricing: The median sales price in September was $190,000, an increase of 12 percent from last September ($170,000). The September median sales price increased 5.6 percent from August. This direction is consistent with historical data (2011-15) indicating that the September median sales price on average increases from August by 0.3 percent. Pricing can fluctuate from month to month as the sample size of data is subject to seasonal buying patterns. ACRE recommends consulting with a local real estate professional who has access to pricing data at the neighborhood level.

Year-to-date, Birmingham home sales have risen 9 percent from the same period last year.

Industry perspective: “The decline in the HPSI (Home Purchase Sentiment Index) over the past two months from the survey-high in July of 86.5 adds a note of caution to our moderately positive housing outlook,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Downside changes came in particular from the HPSI components ‘mortgage rate direction’ and ‘good time to buy a house.’ In addition, the starter home tight supply and rising home prices as well as the unsettled political environment are likely giving many consumers a reason to pause or question their home purchase sentiment.” For the full report, click here.

Click here to generate more graphs from the Birmingham September Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Birmingham Residential Monthly Report is developed in conjunction with the Greater Alabama MLS and the Birmingham Association of Realtors to better serve Birmingham metro-area consumers.