Sales: According to the Greater Alabama Multiple Listing Service, Birmingham-area residential sales totaled 1,229 units during December 2019, up 3.8% from 1,184 sales in the same month a year earlier. December sales were up 7.2% compared to 1,146 sales in November of last year. Results were 15.5% above the five-year December average of 1,064 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 December were 4,411 units, a decrease of 6.5% from December 2018’s 4,717 units and a decrease of 9.2% from November 2019’s 4,860 units. December months of supply totaled 3.6 months, down 9.9% from one year ago and down 15.4% from November 2019.

Pricing: The Birmingham-area median sales price in December was $224,815, an increase of 19.9% from one year ago and an increase of 2.1% 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 December was 38 days, a decrease of 29.6% from 54 days in December 2018 and an increase of 15.2% from 33 days in November.

Forecast: December sales were 1.4% or 17 units below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,246 sales for the month, and actual sales were 1,229 units. ACRE forecast a total of 16,647 residential sales in the Birmingham area during 2019, while there were 16,228 actual sales.

ACRE’s statewide perspective: Residential sales growth was especially strong in December as total residential sales increased 18.9% year-over-year from 4,303 to 5,116 closed transactions. Total 2019 sales were up 5.3% from 2018, making 2019 the strongest year for residential sales on record. Home price appreciation in the state continued to climb as the median sales price in December increased 4.8% year-over-year, marking 26 consecutive months of gains. The statewide median sales price was up 5.7% for 2019. While properties listed for sale nationwide decreased 8.5% year-over-year, Alabama’s residential listings continued to tighten, decreasing 13.5% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and continued into the fourth 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 December spent an average of 84 days on the market, a decrease of 18 days from December 2018.

NAR’s national perspective: Existing home sales increased significantly in December, rising 15.1% year-over-year from approximately 377,000 closed transactions one year ago to 434,000 currently. Total 2019 sales were equal to 2018 sales. The nationwide median existing-home price increased 7.8% in December, marking 94 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “I view 2019 as a neutral year for housing in terms of sales. Home sellers are positioned well, but prospective buyers aren’t as fortunate. Low inventory remains a problem, with first-time buyers affected the most.” Properties listed for sale nationwide declined 8.5% in December from approximately 1.53 million listings one year ago to 1.4 million currently.

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.