Sales: According to the Greater Alabama Multiple Listing Service, Birmingham metro-area residential sales totaled 1,513 units during April, 18.4 percent above the same time last year. Total 2017 home sales during April were 1,278. Two more resources to review: Quarterly Report and Annual Report.
For all of the Birmingham area’s housing data, click here.
Forecast: April sales were 164 units or 12.2 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2018 sales forecast through April projected 4,579 closed transactions, while the actual sales were 4,742 units.
Supply: The Birmingham-area housing inventory in April was 5,627 units, a decrease of 13.3 percent from April 2017 and down 54.5 percent from the April peak in 2008 (12,365 units). April inventory in the Birmingham metro area increased 4.8 percent from March. This direction is consistent with seasonal patterns and historical data indicating that April inventory on average (2013-17) increases from March by 4.8 percent.
According to the Greater Alabama MLS, in the Birmingham metro-area market, there were 3.7 months of housing supply during April, down 26.8 percent from 5.1 months of supply during April 2017. 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.
Demand: April residential sales increased by 7.1 percent from the prior month. This direction is consistent with historical data indicating that April sales, on average (2013-17), increase from March by 7.4 percent.
Existing single-family home sales accounted for 84 percent of sales, down from 85 percent in April 2017, while 11 percent were new home sales (down from 12 percent) and 5 percent were condo sales.
Pricing: The median sales price in April was $197,000, a decrease of 1.5 percent from April 2017 ($200,000). The April median sales price increased 3.7 percent from March. This direction is consistent with historical data (2013-17) indicating that the April median sales price on average increases from March by 6.6 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: Statewide, residential real estate sales continued to show growth during the first quarter of 2018 as they grew 2.4 percent from the first quarter of 2017. Low inventory levels, however, played a large role in driving prices upward. During the first quarter of the year, the statewide median sales price increased 7.1 percent from one year ago. Although good news for sellers, this price growth, combined with rising interest rates, could lead to affordability issues for buyers in today’s markets.
Click here to generate more graphs from the Birmingham April Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.