Sales: According to the Greater Alabama MLS, March home sales in the Birmingham area increased 22.5% year-over-year (Y/Y) from 1,375 to 1,684 closed transactions, marking 10 consecutive months of Y/Y gains. Following seasonal trends, sales increased 34.6% from February. Sales are up 18.7% 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 30.4% year-over-year from 4,435 listings one year ago to 3,086 in March. Months of supply (inventory to sales ratio) decreased from 3.2 months to 1.8, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in March was $258,150, an increase of 5.4% from one year ago and an increase of 3.3% from February. 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 March averaged 25 days on the market (DOM), selling 11 days faster than in March 2020.

Forecast: March sales were nine units, or 0.5%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,693 sales for the month, while actual sales were 1,684 units. ACRE forecast a total of 4,260 sales year-to-date, while there were 4,125 actual sales through March, a difference of 3.2%.

New construction: The 238 new homes sold represent 14.1% of all residential sales in the Birmingham area in March. Total sales decreased 4.4% year-over-year. The median sales price in March was $311,690, an increase of 4.6% from February and an increase of 6.4% from one year ago.

NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide decreased for the second consecutive month in March, falling 3.7% from February (seasonally adjusted annual rate). However, sales did increase 12.3% year-over-year. The median sales price for existing homes hit a historic high of $329,100, rising 17.2% year-over-year, also a record gain. Rising home prices are largely a result of extremely low housing inventory. The 1.07 million units listed for sale represent a decline of 28.2% year-over-year, resulting in 2.1 months of supply.

Lawrence Yun, chief economist for NAR, said, “Consumers are facing much higher home prices, rising mortgage rates and falling affordability; however, buyers are still actively in the market. The sales for March would have been measurably higher had there been more inventory. Days-on-market are swift, multiple offers are prevalent and buyer confidence is rising.”

Yun added that the economic outlook is encouraging and that mortgage rates are still historically low, even with the recent uptick.

ACRE commentary: Home sales in Alabama increased 23.4% year-over-year (Y/Y) in March, marking 10 consecutive months of Y/Y gains. The strong rebound in demand seen during the second half of 2020 has continued into the first quarter of 2021, with home sales rising 18.9% Y/Y during that period. Home sales prices continued to trend upward in March, rising 16.6% Y/Y, mainly a result of market fundamentals (increased demand and continued reduction in supply). Housing inventory in the state reached another record low of 9,721 listings in March, falling 46.4% Y/Y, also a record decline.

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 March 1-31. Thus, the performance represented is historical and should not be used as an indicator of future results.