Sales: According to the Greater Alabama MLS, December home sales in the Birmingham area decreased 39.4% year-over-year (Y/Y) from 1,567 to 949 closed transactions. Following seasonal trends, sales decreased 4.9% from November. Sales were down 14.7% for 2022. Two more resources to review: Quarterly Report and Annual Report.

For all Birmingham-area housing data, click here.

Inventory: December listings (3,160) decreased 8.5% from November and increased 51.2% from one year ago. At the current sales pace, all the active inventory on the market would sell in 3.3 months, down from 3.5 months in November and up from 1.3 months in December 2021. The equilibrium point where buyers and sellers have roughly equal bargaining power is 4-5 months of supply.

Pricing: The median sales price in December was $277,000, an increase of 1.8% from one year ago and a decrease of 1.1% from November. 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 December averaged 28 days on the market, three days longer than in December 2021.

Forecast: December sales were 491 units, or 34.1%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,440 sales for the month, while actual sales were 949 units. ACRE forecast a total of 18,128 sales in 2022, while there were 16,312 actual sales through December, a difference of 10%.

New construction: The 96 new homes sold represent 10.1% of all residential sales in the Birmingham area in December. Total sales decreased 62.9% year-over-year. The median sales price in December was $384,110, a decrease of 1.1% from November and a decrease of 0.1% from one year ago.

Click here to view the entire monthly report.

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