Birmingham-area median home sales price up 5% in October from prior year

Birmingham-area median home sales price up 5% in October from prior year
The number of homes sold in the area during October increased 2.6% from the same month in 2018. (Getty Images)

Sales: According to the Greater Alabama Multiple Listing Service, Birmingham-area residential sales totaled 1,282 units during October, up 2.6% from 1,250 sales in the same month a year earlier. October sales were down 11.8% compared to 1,453 sales in September. Results were 16.9% above the five-year October average of 1,097 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 October were 5,111 units, a decrease of 6% from October 2018’s 5,440 units and a decrease of 3% from September 2019’s 5,268 units. October months of supply totaled 4 months, a decrease of 8.4% from October 2018’s 4.4 months of supply. October’s months of supply increased 10% from September 2019’s 3.6 months of supply.

Pricing: The Birmingham-area median sales price in October was $210,000, an increase of 5.1% from one year ago and a decrease of 3.7% from the prior month. 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 October was 36 days, a decrease of 21.7% from 46 days in October 2018 and a decrease of 10% from 40 days in September.

Forecast: October sales were 1.3% or 17 units above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,265 sales for the month, and actual sales were 1,282 units. ACRE forecast a total of 14,200 residential sales in the Birmingham area year-to-date, while there were 13,853 actual sales through October.

ACRE’s statewide perspective: Residential sales growth continued in September as total residential sales increased 8.7% year-over-year from 5,069 to 5,510 closed transactions. Year-to-date, sales are up 4.3% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in September increased 7% year-over-year, marking 23 consecutive months of gains. The statewide median sales price is up 4.3% year-to-date. While nationwide inventory levels (active listings) decreased 2.7% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.7% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the third quarter of 2019. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace than one year ago. Homes selling in Alabama during September spent an average of 82 days on the market, a decrease of eight days from September 2018.

NAR’s national perspective: Existing home sales rebounded in September, increasing 7.4% year-over-year from approximately 421,000 closed transactions one year ago to 452,000 currently. The nationwide median existing-home price increased 5.9% in September, marking 91 consecutive months of year-over-year gains. John Smamby, president of the National Association of Realtors, said, “For families on the sidelines thinking about buying a home, current rates are making the climate extremely favorable in markets across the country. These traditionally low rates make it that much easier to qualify for a mortgage, and they also open up various housing selections to buyers everywhere.”

 

 

 

 

 

 

 

 

 

 

Click here to view the entire monthly report.

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.

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