Sales: According to the Greater Alabama MLS, July home sales in the Birmingham area increased 14.6% year-over-year from 1,565 to 1,794 closed transactions. After Y/Y declines in April and May, sales rebounded with gains in June and July. Residential sales in the area are now up 0.4% year-to-date. Two more resources to review: Quarterly Report and Annual Report.

For all Birmingham-area housing data, click here.

Inventory: Homes listed for sale decreased 18% year-over-year from 5,552 listings one year ago to 4,553 in July. Months of supply (inventory to sales ratio) decreased from 3.5 months to 2.5, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in July was $250,000, an increase of 13.6% from one year ago and an increase of 2% from June. 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.

Homes sold in July averaged 30 days on the market (DOM), selling four days faster than in July 2019.

Forecast: July sales were 208 units, or 13.1%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,586 sales for the month, while actual sales were 1,794 units. ACRE forecast a total of 9,869 residential sales year-to-date, while there were 9,614 actual sales through July, a difference of 2.6%.

New construction: The 229 new homes sold represent 12.8% of all residential sales in the area in July. Total sales increased 27.2% year over year, extending the area’s streak of Y/Y gains in new home sales to eight consecutive months. The median sales price in July was $306,440, an increase of 25.1% from June and an increase of 10% from one year ago.

Click here to view the entire monthly report.

The Birmingham Area Residential Monthly Report is developed in connection with the Birmingham Association of Realtors.

Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period July 1-31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.