Sales: According to the Greater Alabama Multiple Listing Service, Birmingham-area residential sales totaled 1,581 units during June, up 2.8% from 1,538 sales in the same month a year earlier. June sales were down 4.3% compared to 1,652 sales in May. Results were 8.6% above the five-year June average of 1,455 sales. Two more resources to review: Quarterly Report and Annual Report.
For all Birmingham-area home sales data, click here.
Inventory: Total homes listed for sale in the Birmingham area during June were 5,381 units, a decrease of 6.2% from June 2018’s 5,738 units and a decrease of 0.4% from May 2019’s 5,405 units. June months of supply totaled 3.4 months, a decrease of 8.8% from June 2018’s 3.7 months of supply. June’s months of supply increased 4% from May’s months of supply.
Pricing: The Birmingham-area median sales price in June was $230,000, an increase of 4.9% from one year ago and a decrease of 2.1% from the prior month. This is inconsistent with historical data indicating that the June median sales price on average (2014-18) increases 1.5% from May. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days on the market (DOM) for homes sold during June was 30 days, a decrease of 33.3% from 45 days in June 2018 and a decrease of 18.9% from 37 days in May.
Forecast: June sales were 7.3% or 124 units below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,705 sales for the month, and actual sales were 1,581 units. ACRE forecast a total of 8,319 residential sales in the Birmingham area year-to-date, while there were 8,010 actual sales through June.
ACRE’s statewide perspective: Statewide residential sales increased slightly in May, extending the streak to five consecutive months of year-over-year sales gains. Statewide residential sales increased 1.4% from 6,306 closed transactions in May 2018 to 6,392 in May 2019. Year-to-date, sales are up 3.2% from 2018. Home price appreciation in the state continued to climb as the median sales price in May increased 4.3% year-over-year from $165,688 to $172,864. The statewide median sales price is also up 3.4% year-to-date. Although nationwide inventory levels are trending upward, Alabama’s residential listings decreased 11.6% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the spring buying season of 2019. With low inventory levels, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during May spent an average of 88 days on the market, an improvement of 12 days from May 2018.
NAR’s national perspective: Existing home sales rebounded in May, posting their first year-over-year gain since August 2018. Nationwide sales increased 0.9% from approximately 535,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.8% in May, marking 87 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”
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