Sales: According to the Greater Alabama MLS, November home sales in the Birmingham area increased 27.8% year-over-year (Y/Y) from 1,146 to 1,465 closed transactions. Residential sales in the area are now up 7.4% 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 17.2% year-over-year from 4,860 listings one year ago to 4,023 in November. Months of supply (inventory to sales ratio) decreased from 4.2 months to 2.7, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in November was $241,500, an increase of 9.6% from one year ago and a decrease of 1.4% from October. 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 November averaged 23 days on the market (DOM), selling 10 days faster than in November 2019.

Forecast: November sales were 270 units, or 22.6%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,195 sales for the month, while actual sales were 1,465 units. ACRE forecast a total of 15,347 residential sales year-to-date, while there were 16,108 actual sales through November, a difference of 5%.

New construction: The 177 new homes sold represent 12.1% of all residential sales in the Birmingham area in November. Total sales increased 14.2% year-over-year. The median sales price in November was $304,970, an increase of 0.2% from October and a decrease of 5.3% from one year ago.

NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide decreased 2.5% from October (seasonally adjusted annual rate), ending five consecutive months of gains. However, sales did increase significantly from one year ago, rising 25.8%. Sales prices continued to grow at higher rates than before the pandemic, rising almost 15% year-over-year.

Lawrence Yun, chief economist for NAR, said, “Home sales in November took a marginal step back, but sales for all of 2020 are already on pace to surpass last year’s levels. Given the COVID-19 pandemic, it’s amazing that the housing sector is outperforming expectations. Circumstances are far from being back to the pre-pandemic normal. However, the latest stimulus package and with the vaccine distribution underway, and a very strong demand for home ownership still prevalent, robust growth is forthcoming for 2021.”

ACRE commentary: Home sales in Alabama increased for the sixth consecutive month in November, rising 23.3% year-over-year. The strong rebound in sales activity during the summer months has extended into the fall, with many buyers looking for more housing space due to more time spent at home. Low mortgage rates also played a significant role as they helped offset rising home sales prices, which increased almost 15% Y/Y in November. Sales prices continue to grow at a faster rate than before the pandemic, which could motivate more potential sellers to list their homes going forward. Tight inventory has played a large role in driving sales prices upward, with total listings down 33.8% in November.

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 Nov. 1-30. 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.