Tag Archives: Birmingham Alabama

Birmingham Area Real Estate Sales in November Up 30% Over Last Year

Birmingham Area MLS* Monthly Observations for November 2016

November saw a continuation of the pick up in dollar and unit sales over last year. Prices seem to be modestly increasing. Total dollar sales for November were $269,219,038 up 30% from $205,886,919 last year, and down 6% from last month at $287,629,774.

Total Unit sales were off 10% at 1,283 in November from 1,428 in October, a decrease of 145. This is up by 22% and 231 from last November at 1,052. New sales were up to 164 homes this month, and 257 in October, and up by 43 from 121 last year. The low inventory level of new homes suggests a good environment for builders, and prices have begun to show a more solid uptrend. Used sales were 1,119 homes in November, off 12% from 1,271 last month, a decrease of 152, and up by 188 units  from 931 last year (Sect E p.3).

ACRE numbers are slightly different from those we report. With ACRE, we released our month by month 2016 forecast which can be seen here: ACRE. For Birmingham, the full year projection for 2016 = 13,460, a 1.25% difference from 2015 actual of 13,294.  October overperformed the projection. The cumulative error is plus 9% year to date; that is actuals are running ahead of projections (through October).

Housing permits for October are a bit less than last year. For Jefferson County, in October there were 66 permits compared with 101 last year. Shelby County was somewhat higher than last year’s level (see the web site).

Total inventory is slightly lower this month at 8,654 vs. last month at 8,851 and less than 9,740 last year. It is curious that we don’t seem to be seeing the more normal seasonal reduction of inventory which has been remarkably stable since the beginning of the year without the normal uptick we usually see in the summer either (Sect C p.1). I’d guess that it is an indication of market equilibrium, as the months of inventory have stabilized at about the 6 month level. Active New listings decreased to 1,101 in November from 1,158 in October (Sect E p.3). Absorption rate for New homes is at 7 months supply this month, which is even with 7 months last year. (Sect E p.3). The New homes have normal inventory levels in the 4-8 month range depending on area and price range. (Sect C p.1). The level of inventory, both in months of inventory and housing units, has been continuing to improve for the year.

Absorption for Used homes in November shows 6 months, which is less than the 7 last year. Used Active listings at 7,553 are down from last month of 7,693, and quite a bit less than 8,725 last year (Sect E p.3). Inventory levels have continued to trend down from prior years. Market performance is highly area specific, so check the individual area charts. For instance, Mountain Brook has between 1 and 4 months of inventory except in the over $900,000 category, which has 9 months of inventory (44 homes), with 4 sold in that price range last month. There are a number of MLS areas, particularly those known as the “over the mountain” communities, showing similarly low levels of inventory, including Homewood which has 3 months of inventory.

Birmingham area Average Days on Market for New houses is 209 compared with last month at 201. The Used homes DOM was 122 in November vs 112 last month, (Sect A p.18). Average sales price for Sold New homes decreased to $299,783 from $313,521 last month (Sect A p2), over a several month period though prices seem to be increasing. Average sales price for Sold Used was $196,653 this month compared to $187,574 last month. (Sect A p2).

All in all, the market continues to look quite healthy.
TWB 12/9/2016          

Birmingham Residential Sales Healthy in October

Birmingham Area MLS* Monthly Observations for October 2016

October saw a continuation of the pick up in dollar and unit sales over last year. Prices seem to be increasing. Total dollar sales for October were $280,111,936 up 13% from $247,969,228 last year, and down 17% from last month at $337,315,042.

Total Unit sales were off 12% to 1,383 in October from 1,577 in September, a decrease of 194. This is up  by 6% and 76 from last October at 1,307. New sales were down to 148 homes this month, and 235 in September, and up by 34 from 114 last year. The low inventory level of new homes suggests a good environment for builders, and prices have begun to show a more solid uptrend. Used sales were 1,235 homes in October, off 8% from 1,342 last month, a decrease of 107, and up by 42 units  from 1,193 last year (Sect E p.3).

ACRE numbers are slightly different from those we report. With ACRE, we released our month by month 2016 forecast which can be seen here: ACRE. For Birmingham, the full year projection for 2016 = 13,460, a 1.25% difference from 2015 actual of 13,294.  September overperformed the projection. The cumulative error is plus 9% year to date; that is actuals are running ahead of projections (through September).

Housing permits for September are a bit less than last year. For Jefferson County, in September there were 90 permits compared with 83 last year. Shelby County was somewhat lower than last year’s level (see the web site).

Total inventory is slightly lower this month at 8,865 vs. last month at 8,948 and less than 9,955 last year. It is curious that we don’t seem to be seeing the more normal seasonal reduction of inventory which has been remarkably stable since the beginning of the year without the normal uptick we usually see in the summer either (Sect C p.1). I’d guess that it is an indication of market equilibrium, as the months of inventory have stabilized at about the 6 month level. Active New listings decreased to 1,102 in October from 1,127 in September (Sect E p.3). Absorption rate for New homes is at 7 months supply this month, which is even with 7 months last year. (Sect E p.3). The New homes have normal inventory levels in the 4-8 month range depending on area and price range. (Sect C p.1). The level of inventory, both in months of inventory and housing units, has been continuing to improve for the year.

Absorption for Used homes in October shows 6 months, which is less than the 7 last year. Used Active listings at 7,763 are down from last month of 7,825, and quite a bit less than 8,908 last year (Sect E p.3). Inventory levels have continued to trend down from prior years. Market performance is highly area specific, so check the individual area charts. For instance, Mountain Brook has between 1 and 4 months of inventory except in the over $900,000 category, which has 9 months of inventory (46 homes), with 7 sold in that price range last month. There are a number of MLS areas showing similarly low levels of inventory, including Homewood which has 3 months of inventory.

Birmingham area Average Days on Market for New houses is 201 compared with last month at 190. The Used homes DOM was 112 in October vs 109 last month, (Sect A p.18). Average sales price for Sold New homes increased to $316,624 from $286,455 last month (Sect A p2), over a several month period though prices seem to be increasing. Average sales price for Sold Used was $188,868 this month compared to $201,192 last month. (Sect A p2).

All in all, the market continues to look quite healthy.

TWB 11/12/2016

May Birmingham Residential Real Estate Market A Bit Ahead of Last Year

Birmingham Area MLS* Monthly Observations for May 2016

This year seems to be unfolding almost identically to last as far as sales levels go. Inventories are down, and prices seem to be level with last year as well.  Total Unit sales were up 14% to 1,832 in May from 1,609 in April, an increase of 223. This is up by 207 from last May at 1,625. New sales were up at 162 homes this month, and 140 in April, and off by 16 from 146 last year. The low inventory levels of new homes suggest a good environment for builders even with prices trending steady. Used sales were 1,670 homes in May, up 14% from 1,469 last month, an increase of 201, and up by 191 units  from 1,479 last year (Sect E p.3).

ACRE numbers are slightly different from those we report. With ACRE, we released our month by month 2016 forecast which can be seen here: ACRE. For Birmingham, the full year projection for 2016 = 13,460, a 1.25% difference from 2015 actual of 13,294.  April overperformed the projection. The cumulative error is plus 5% year to date, that is, actuals are running ahead of projections (thru April).

Housing permits, the census bureau section that supplies this data, has been down for three months now. They have made data available in a different format, and I’m not entirely sure that the data is comparable, but it seems to be. Based on the new data, housing permits are up, as I would expect . For Jefferson County, in February and March there were 128 and 156 permits respectively compared with 98 and 125 last year. Similarly, Shelby County has been running about double last year’s level (see the web site).

Total inventory is slightly higher this month at 9,529 vs. last month at 9,117 and less than 10,341 last year. Active New listings decreased to 1,068 in May from 1,055 in April (Sect E p.3). Absorption rate for New homes is at 7 months supply this month, which is even with 7 months last year. (Sect E p.3). The New homes have normal inventory levels in the 4-6 month range depending on area and price range. However, the $700,000-$900,000 range has 13 months of supply (28 houses) (Sect C p.1). The level of inventory, both in months of inventory and housing units has been continuing to improve for the year.

Absorption for Used homes in May shows 6.5 months, which is less than the 8 last year. Used Active listings at 8,461 are up from last month of 8,062, and quite a bit less than 9,327 last year (Sect E p.3). Inventory levels have continued to trend down from prior years. Market performance is highly area specific, so check the individual area charts. For instance, Mountain Brook has between 1 and 7 months of inventory except in the over $900,000 category, which has 16 months of inventory (61 homes), with 11 sold in that price range last month. There are a number of MLS areas showing similarly low levels of inventory, including Homewood (only 4 months of inventory).

Birmingham area Average Days on Market for New houses is 203 compared with last month at 211. The Used homes DOM was 111 in May vs 126 last month, (Sect A p.18). Average sales price for Sold New homes increased to $302,550 from $302,391 last month (Sect A p2), and prices seem to be increasing slowly compared to last year. Average sales price for Sold Used were distorted by the above mentioned erroneous sales in Bessemer . (Sect A p2).

TWB 6/15/2016

April Birmingham Real Estate Market Continues To Look Like Last Year

Birmingham Area MLS* Monthly Observations for April 2016

This year seems to be unfolding almost identically to last as far as sales levels go. Inventories are down, and prices seem to be level with last year as well. Dollar sales in April experienced an expected increase of 12% to $319,627,228 from March at $285,245,363, a bit more than last April’s  $308,690,507 (up 4%). The 12 month moving average line for total dollar sales over the last six months has flattened.

Total Unit sales were up 1% to 1,508 in April from 1,488 in March, an increase of 20. This is down by 19 from last April at 1,527. New sales were down at 134 homes this month, and 171 in March and off by 13 from 147 last year. The low inventory levels of new homes suggest a good environment for builders, although prices seem to be steady. Used sales were 1,374 homes in April, up 3% from 1,317 last month, an increase of 57, and off by 6 units  from 1,380 last year (Sect E p.3).

ACRE numbers are slightly different from those we report. With ACRE, we released our month by month 2016 forecast which can be seen here: ACRE. For Birmingham, the full year projection for 2016 = 13,460, a 1.25% difference from 2015 actual of 13,294.  March overperformed the projection. The cumulative error is plus 2.71% year to date (thru March).

Housing permits, the census bureau section that supplies this data, has been down for three months now. They have made data available in a different format and I’m not entirely sure that the data is comparable, but it seems to be. Based on the new data, housing permits are up as I would expect . For Jefferson County, in February and March there were 128 and 156 permits respectively compared with 98 and 125 last year. Similarly, Shelby County has been running about double last year’s level (see the web site).

Total inventory is slightly higher this month at 9,599 vs. last month at 8,924 and less than 9,833 last year. Active New listings decreased to 1021 in April from 1,077 in March (Sect E p.3). Absorption rate for New homes is at 7 months supply this month, which is even with 7 months last year. (Sect E p.3). The New homes for the most part have normal inventory levels in the 1-9 month range depending on area and price range. However, the $800,000-$900,000 range has 18 months of supply (12 houses) (Sect C p.1). The level of inventory, both in months of inventory and housing units has been continuing to improve for the year.

Absorption for Used homes in April shows 7 months, which is the same as 7 last year. Used Active listings at 8,654 are up from last month at 8,223, and a bit less than 9,125 last year (Sect E p.3). Inventory levels have continued to trend down from prior years. Market performance is highly area specific, so check the individual area charts. For instance, Mountain Brook has between 1 and 6 months of inventory except in the $6-700,000 range (9 months of inventory), and the over $900,000 category, which has 16 months of inventory (59 homes), with 7 sold in that price range last month . There are a number of MLS areas showing similarly low levels of inventory, including Homewood (only 4 months of inventory).

Birmingham area Average Days on Market for New houses is 211 compared with last month at 202. The Used homes DOM was 126 in April vs 128 last month, (Sect A p.18). Average sales price for Sold New homes increased to $305,698 from $279,918 last month (Sect A p2), and prices seem to be flat over the last year. Average sales price for Sold Used homes increased to $202,812 from $180,242 last month (Sect A p2). The moving average price for all homes has flattened for the past year. (Sect A p2).

TWB 5/8/2016

Birmingham 1st Quarter Residential Real Estate Market Very Similar to Last Year

Birmingham Area MLS* Monthly Observations for March 2016

This year seems to be unfolding almost identically to last, as far as sales levels go. Inventories are down, and prices seem to be level with last year as well. Dollar sales in March experienced an expected increase of 29% to $274,938,104 from February at $213,696,545, a bit less than last March’s  $280,039,512 (off 2%). The 12 month moving average line for total dollar sales over the last five months has flattened.

Total Unit sales were up 20% to 1,424 in March from 1,156 in February, an increase of 268. This is up by 4 from last March at 1,120. New sales were up at 162 homes this month, and 138 in February and up by 14 from 148 last year. The low inventory levels of new homes suggest a good environment for builders, although prices seem to be steady. Used sales were 1,264 homes in March, up 24% from 1,018 last month, an increase of 246, and off by 10 units  from 1,272 last year (Sect E p.3).

ACRE numbers are slightly different from those we report. With ACRE, we released our month by month 2016 forecast which can be seen here: ACRE. For Birmingham, the full year projection for 2016 = 13,460, a 1.25% difference from 2015 actual of 13,294.  February overperformed the projection with actual sales resulting in an error of +1 percent for the month, and a cumulative error of .47% year to date (thru Feb).

Housing permits, the census bureau section that supplies this data, has been down for two months now. I’ll update the website as soon as that data becomes available. Still, it seems to me that builders and banks are being very cautious on new construction.

Total inventory is slightly higher this month at 9,599 vs. last month at 8,924 and less than 9,833 last year. Active New listings decreased to 1027 in March from 1,101 in February (Sect E p.3). Absorption rate for New homes is at 7 months supply this month, which is even with 7 months last year. (Sect E p.3). The New homes for the most part have normal inventory levels in the 1-9 month range depending on area and price range. However, the $800,000-$900,000 range has 15 months of supply (10 houses) (Sect C p.1). This level of inventory, both in months of inventory and housing units has been continuing to improve for the year.

Absorption for Used homes in March shows 7 months, which is the same as 7 last year. Used Active listings at 8,572 are up from last month at 7,841, and a bit less than 8,803 last year (Sect E p.3). Inventory levels have continued to trend down from prior years. Market performance is highly area specific, so check the individual area charts. For instance, Mountain Brook has between 1 and 5 months of inventory except in the $6-700,000 range (10 months of inventory), and the over $900,000 category, which has 15 months of inventory (50 homes), with 2 sold in that price range last month . There are a number of MLS areas showing similarly low levels of inventory, including Homewood (only 4 months of inventory).

Birmingham area Average Days on Market for New houses is 203 compared with last month at 186. The Used homes DOM was 128 in March vs 137 last month, (Sect A p.18). Average sales price for Sold New homes decreased to $280,264 from $285,855 last month (Sect A p2), and prices seem to be flat over the last year. Average sales price for Sold Used homes increased to $181,882 from $171,168 last month (Sect A p2). The moving average price for all homes has flattened for the past year. (Sect A p2).

TWB 4/10/2016  

Birmingham February Area Sales About Even With Last Year

Birmingham Area MLS* Monthly Observations for February 2016

Dollar sales in February experienced an expected increase of 16% to $208,404,758, from January $179,801,902, a bit less than last February’s  $213,154,525 (off 2%). The 12 month moving average line for total dollar sales over the last four months has flattened.

Total Unit sales were up 20% to 1,118 in February from 969 in January, an increase of 149. This is off by 16 from last February at 1,134. New sales were up at 134 homes this month and 102 in January and up by 20 from 114 last year. The price pressure and low inventory levels of new homes suggests a good environment for builders..Used sales were 984 homes in February, up 13% from 867 last month, an increase of 117, and off by 36 units  from 1,020 last year (Sect E p.3).

ACRE numbers are slightly different from those we report. With ACRE, we released our month by month 2016 forecast which can be seen here: ACRE. For Birmingham the full year projection for 2016 = 13,460, a 1.25% difference from 2015 actual of = 13,294.  January underperformed the projection, actual sales resulted in an error of -.26 of one percent for the month, off by 2 homes for the month.

Housing permits the census bureau was down at the time of this writing, I’ll update the website as soon as that data becomes available. Still it seems to me that builders and banks are being very cautious on new construction.

Total inventory is slightly lower this month at 8,860 vs. last month at 8,938 and less than 9,430 last year. Active New listings decreased to 1009 in February from 1,077 in January (Sect E p.3). Absorption rate for New homes is at 7 months supply this month, which is even with 7 months last year. (Sect E p.3). The New homes for the most part have normal inventory levels in the 1-9 month range depending on area and price range. However, the $800,000-$900,000 range has 21 months of supply (12 houses) (Sect C p.1). This level of inventory, both in months of inventory and housing units has been continuing to improve for the year.

Absorption for Used homes in February shows 6 months which is about even with 7 last year. Used Active listings at 7,851 are even with last month at 7,861 and a bit less than 8,407 last  year (Sect E p.3). Inventory levels have continued to generally trend down from prior years. Market performance is highly area specific, so check the individual area charts. For instance, Mountain Brook has between 1 and 6 months of inventory except in the over $900,000 category, which has 11 months of inventory (41 homes), with 2 sold in that price range last month . There are a number of MLS areas showing similarly low levels of inventory, including Homewood (only 3 months of inventory).

Birmingham area Average Days on Market for New houses is 186 compared with last month at 195. The Used homes DOM was 137 in February vs 132 last month, (Sect A p.18). Average sales price for Sold New homes increased to $289,738 from $273,127 last month (Sect A p2) and prices seem to be flat over the last year. Average sales price for Sold Used homes decreased to $172,337 from $175,251 last month (Sect A p2). The moving average price for all homes has flattened for the past year. (Sect A p2).
TWB 3/13/2016  

Birmingham 2015 Residential Real Estate Sales Finish Strong

Birmingham Area MLS* Monthly Observations for December 2015

Monthly Birmingham Sales

Monthly Birmingham Sales

Full year results:

Total Units New Used Total Dollars
2014 15,686 1,698 13,988 $3,006,565,892
2015 16,813 1,748 15,065 $3,334,574,593
% change 7.2% 2.9% 7.7% 10.9%

Dollar sales in December experienced an expected year end pick-up of 18% to $235,361,806 from November $200,218,537, almost identical to last December’s of $238,138,339 (off 1%). The 12 month moving average line for total dollar sales over the last three months of the year has flattened.

Total Unit sales were up 20% to 1,231 in December from 1,023 in November, an increase of 208. This is up by 5% from last December at 1,172. New sales were up at 158 homes this month and 115 in November and off from 177 last year. The price pressure and low inventory levels of new homes suggests a good environment for builders. Used sales were 1,073 homes in December, up 18% from 908 last month, an increase of 165, and up by 78 units or 8% from 995 last year (Sect E p.3).

ACRE numbers are slightly different from those we report. With ACRE, we released our 2015 forecast which can be seen here: ACRE. December sales were not yet available. ACRE’s year-to-date sales forecast through November projected 12,332 closed transactions while the actual sales were 12,289 units, (off by 43 units) a cumulative variance of -.35%. Given the December increase in actual sales reported here, I expect we will come in very close for the full year.

Housing permits were off in Jefferson County to 58 in November from 101 in October, which is off from 72 last year. This is the lowest level since August 2014. Shelby County was 26 from 32 last month, up from 10 last year.

Total inventory is slightly lower this month at 8,876 vs. last month at 9,571 and somewhat less than 9,002 last year. Active New listings decreased to 931 in December from 1,025 in November (Sect E p.3). Absorption rate for New homes is at 6 months supply this month, which is about even with 6 months last year. (Sect E p.3). The New homes for the most part have normal inventory levels in the 1-7 month range depending on area and price range. However, the $800,000-$900,000 range has 22 months of supply (11 houses) (Sect C p.1). This level of inventory, both in months of inventory and housing units has been quite stable for the year.

Absorption for Used homes in December shows 6 months which is about even with 7 last year. Used Active listings at 7,945 are even with last month at 8,546 and a bit less than 8,109 last  year (Sect E p.3).For the year, inventory levels have generally trended down from prior years. Market performance is highly area specific, so check the individual area charts. For instance, Mountain Brook has between 1 and 9 months of inventory except in the over $900,000 category, which has 10 months of inventory (39 homes), with none sold in that price range last month . There are a number of MLS areas showing similarly low levels of inventory, including Homewood (only 3 months of inventory).

Birmingham area Average Days on Market for New houses is 205 compared with last month at 207. The Used homes DOM was 125 in December vs 121 last month, (Sect A p.18). Average sales price for Sold New homes decreased to $310,211 from $333,656 last month (Sect A p2). Average sales price for Sold Used homes decreased to $173,670 from $178,247 last month (Sect A p2). The moving average price for all homes has been up steadily for the past year. (Sect A p2).

TWB 1/10/2016

Birmingham Residential Real Estate Sales Strong in May

Birmingham Area MLS* Monthly Observations for May 2015

Dollar sales in May experienced a seasonal improvement of 6% to $323,274,789 from April’s $305,091,148, up by 12% over last May’s of $289,612,036. The increase over last year confirms a strong spring season. The 12 month moving average line for total dollar sales is continuing to show a very steady upward trend indicating consistent growth.

Total Unit sales were up 3% to 1,551 in May from 1,505 in April, an increase of 46. This is up 4% from last May at 1495. The larger rise in dollar sales than unit sales indicates improving pricing, and suggests the lower inventory levels are making it more of a seller’s market. New sales decreased by 3 units to 140 homes this month from 143 in April and off from 134 last year. The price pressure and low inventory levels of new homes suggests a good environment for builders. Used sales were 1,411 homes in May, up 4% from 1,362 last month, an increase of 49, and up by 4% or 50 units from 1,361 last year (Sect E p.3).

ACRE numbers are slightly different from those we report. With ACRE, we released our 2015 forecast which can be seen here. ACRE reported: “Forecast: May sales were .8 percent or 1 unit above of our monthly forecast. ACRE’s year-to-date sales forecast through May projected 5,282 closed transactions while the actual sales were 5,260 units, a cumulative variance of .4 percent.” I also expect to see a healthy increase in new construction, which has been quite modest so far..

Total inventory is 1% lower at 10,338 vs. last month at 10,420 and 1% more than the 10,274 last year. Active New listings decreased to 937 in May from 1,274 in April, a decline of 337 units (Sect E p.3).  

Housing permits were down in Jefferson County to 117 in April from 125 in February, which is down from 119 last year. Shelby County went from 50 to 52 in April, up from 45 last year. I expect this pace to pick-up. We are seeing a more significant number of multi-family construction units (which we do not formally track or report) in most markets.

Absorption rate for New homes is at 6.6 months supply this month, which is up slightly from 6.0 months last year at this time. Last month though, shows 9 months of supply (Sect E p.3). The New homes for the most part have normal inventory levels in the 1-7 month range depending on area and price range. (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in May shows 8 months which is even with 8 months last year. Used Active listings at 9,401 are up slightly from last month at 9,146 but lower than the 9,462 last year (Sect E p.3). Market performance is highly area specific, so check the individual area charts. For instance, Mountain Brook has about 6 months of inventory except in the over $900,000 category, which has 9 months of inventory (50 homes), with 7 sold in that price range last month . The average days on market for that category is 76. There are a number of MLS areas showing similarly low levels of inventory, including Homewood and Centerpoint.

Birmingham area Average Days on Market for New houses is 194 compared with last month at 198. The Used homes DOM was 114 in May vs 122 last month, (Sect A p.18). Average sales price for Sold New homes decreased to $287,643 from $314,478 last month (Sect A p2). Average sales price for Sold Used homes increased to $200,570 from $190,984 last month (Sect A p2). The moving average price for all homes has been up steadily for the past year. (Sect A p2). 

TWB 6/11/2015

April Birmingham Area Real Estate Sales Jump 12% Over Last Year

Birmingham Area MLS* Monthly Observations for April 2015

Dollar sales in April experienced a better than expected seasonal improvement of 7% to $292,262,727 from March’s $273,508,424, up by 12% over last April’s of $262,916,981. The increase over last year in the last four months indicates a strong spring season. The 12 month moving average line for total dollar sales is continuing to show a very steady upward trend indicating consistent growth.

Total Unit sales were up 4% to 1,439 in April from 1,387 in March, an increase of 52. This is up 2% from last April at 1414. The larger rise in dollar sales than unit sales indicates improving pricing, and suggests the lower inventory levels are making it more of a seller’s market. New sales decreased by 10 units to 132 homes this month from 142 in March and off from 134 last year. The price pressure and low inventory levels of new homes suggests a good environment for builders. Used sales were 1,307 homes in April, up 5% from 1,245 last month, an increase of 62, and up by 2% or 27 units from 1,280 last year(Sect E p.3).

ACRE numbers are slightly different from those we report. With ACRE, we released our 2015 forecast which can be seen here. We expect the Birmingham area to be 6% above 2014 levels. So this month’s unit increase of 4% is behind the projection.  Based on what I am seeing, I expect substantial market gains. I also expect to see a healthy increase in new construction, the beginnings of which we can see in permits below.

Total inventory is 2% higher at 10,281 vs. last month at 10,093 and 1% more than the 10,194 last year. Active New listings decreased to 943 in April from 1,253 in March, a decline of 31 units (Sect E p.3).  

Housing permits were up in Jefferson County to 125 in March from 98 in February, which is down from 133 last year. Shelby County went from 45 to 50 in March, up from 38 last year. I expect this pace to pick-up. We are seeing a more significant number of multi-family construction units (which we do not formally track or report) in most markets.

Absorption rate for New homes is at 6.7 months supply this month, which is up slightly from 6.1 months last year at this time. Last month though, shows 8.9 months of supply (Sect E p.3). The New homes for the most part have normal inventory levels in the 1-7 month range depending on area and price range. (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in April shows 8 months, even with 8 months last year. Used Active listings at 9,338 are up slightly from last month at 8,840 and lower than the 9,363 last year (Sect E p.3). Market performance is highly area specific, so check the individual area charts. For instance, Mountain Brook has about 6 months of inventory except in the over $900,000 category, which has 9 months of inventory (49 homes), with 2 sold in that price range last month . The average days on market for that category is 95. There are a number of MLS areas showing similarly low levels of inventory, including Homewood and Centerpoint.

Birmingham area Average Days on Market for New houses is 198 compared with last month at 210. The Used homes DOM was 122 in April vs 130 last month, (Sect A p.18). Average sales price for Sold New homes increased to $317,178 from $291,673 last month (Sect A p2). Average sales price for Sold Used homes increased to $191,580 from $186,418 last month (Sect A p2). The moving average price for all homes has been up steadily for the past year. (Sect A p2).

TWB 5/09//2015

Birmingham Area Residential Sales Improve 17% Over Last Year

Birmingham Area MLS* Monthly Observations for March 2015

April Sales

April Sales

Dollar sales in March experienced a better than expected seasonal improvement of 27% to $266,141,196 from February’s $210,080,211, up by 17% over last March’s of $227,902,558. The increase over last year in the last three months indicates the beginning of a strong spring season. The 12 month moving average line for total dollar sales is continuing to show a very steady upward trend indicating consistent growth.

Total Unit sales were up 21% to 1,348 in March from 1,113 in February, an increase of 235. This is up 10% from last March at 1227. New sales increased by 26 units to 138 homes this month from 112 in February and off from 154 last year. Used sales were 1,210 homes in March, up 21% from 1,001 last month, an increase of 209, and up by 8% or 87 units from 1,123 last year(Sect E p.3).

Keeping in mind the ACRE numbers are slightly different from those we report. With Acre, we released our 2015 forecast which can be seen here. We expect the Birmingham area to be 6% above 2014 levels. So this month’s unit increase of 10% is ahead of the projection.  Based on what I am seeing, I expect substantial market gains. I also expect to see a healthy increase in new construction, the beginnings of which we can see from the year over year gains in permits below.

This month total inventory is 1% higher at 9,740 vs. last month at 9,607 and 3% less than the 10,028 last year. Active New listings decreased to 951 in March from 1,209 in February, a decline of 258 units (Sect E p.3).  

Housing permits were down in Jefferson County to 98 in February from 101 in December, which is down from 101 last year. Shelby County went from 39 to 45 in February, up from 30 last year.I expect this pace of building to pick-up. We are seeing a more significant number of multi-family construction units (which we do not formally track or report) in most markets.

Absorption rate for New homes is at 6.8 months supply this month, which is up slightly from 6.1 months last year at this time. Last month though, shows 8.5 months of supply (Sect E p.3). The New homes for the most part have normal inventory levels in the 1-7 month range depending on area and price range. (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in March shows 7 months, one month better than the 8 months last year. Used Active listings at 8,789 are up slightly from last month at 8,398 and lower than the 9,196 last year (Sect E p.3). Market performance is highly area specific, so check the individual area charts. For instance, Mountain Brook has about five months of inventory except in the over $900,000 category, which has 8 months of inventory (44 homes), with six sold in that price range last month . The average days on market for that category is 121. There are a number of MLS areas showing similarly low levels of inventory, including Homewood and Centerpoint.

Birmingham area Average Days on Market for New houses is 210 compared with last month at 209. The Used homes DOM was 130 in March vs 131 last month, (Sect A p.18). Average sales price for Sold New homes decreased to $294,485 from $299,312 last month (Sect A p2). Average sales price for Sold Used homes increased to $186,366 from $176,381 last month (Sect A p2). The moving average price for all homes has been up steadily for the past year. (Sect A p2).

TWB 4/11//2015