Sales: According to the Greater Alabama Multiple Listing Service, Birmingham metro-area residential sales totaled 1,552 units during June, 5.3 percent above the same time last year. Total 2016 home sales during June were 1,474. Year to date, Birmingham-area sales are up 4 percent from the same period in 2016. Two more resources to review: Quarterly Report and Annual Report.
For all of the Birmingham area’s housing data, click here.
Forecast: June sales were 14 units or 0.89 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through June projected 7,599 closed transactions, while the actual sales were 7,554 units.
Supply: The Birmingham-area housing inventory in June was 6,670 units, a decrease of 9.7 percent from June 2016 and down 49.8 percent from the June peak in 2007 (13,294 units). June inventory in the Birmingham metro area neither increased nor decreased from May.
According to the Greater Alabama MLS, in the Birmingham metro-area market, there were 4.3 months of housing supply during June, down 14.2 percent from 5 months of supply during June 2016. 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 June.
Demand: June residential sales decreased by 0.6 percent from the prior month. This direction contrasts with historical data indicating that June sales, on average (2012-16), increase from May by 0.9 percent.
Existing single-family home sales accounted for 85 percent of sales, down from 87 percent in June 2016, while 10 percent were new home sales and 5 percent were condo sales.
Pricing: The median sales price in June was $205,000, an increase of 3.5 percent from June 2016 ($198,000). The June median sales price increased 2.1 percent from May. This direction is consistent with historical data (2012-16) indicating that the June median sales price on average increases from May by 4.7 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.
Industry perspective: “While second-quarter growth is poised to rebound, we expect growth to moderate through the remainder of 2017. Consumer spending, traditionally the largest contributor to economic growth, is sluggish and is lagging positive consumer sentiment and solid hiring,” said Fannie Mae Chief Economist Doug Duncan. “While labor market slack continues to diminish, wage growth is not accelerating and inflation has moved further below the Fed’s target. These conditions support our call that the Fed will continue gradual monetary policy normalization, announce its balance sheet tapering policy in September, and wait until December for additional data, especially on inflation, before raising the fed funds rate for the third time this year.”
Click here to generate more graphs from the Birmingham June Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.