Tag Archives: Price

Birmingham April Real Estate Sales Continue An Improving Trend

Birmingham Area MLS* Monthly Observations for April 2012

Sales in April improved 10% to $189,845,478 from March’s $172,627,863, up 20% from last April’s $158,607,279. The 12 month moving average line for total dollar sales has tilted upward nicely.

Unit sales were up 5% to 1,175 in April from 1,123 in March, an increase of 52. This is up 15% from April 2011 at 1,026. This is 7% unfavorable to our projection of 1,264 sales expected for April and 9% unfavorable year to date. The complete monthly projections from ABRE (a joint project between ACRE and Brander Real Estate) can be found here http://goo.gl/WFHrO along with the worksheets that show the methodology. It appears that the results are closing in on projections as the spring unfolds. New sales declined 4% to 108 homes this month from 113 in March, a decrease of 5 units. Used sales improved 6% to 1,067 homes in April from 1,010 last month, an increase of 57 (Sect E p.3).

This month total inventory is dramatically lower at 10,177 vs. 12,884 last year and 10,627 last month. The drop in the current month is caused by month-end expirations which should come back on the market shortly. Still, there is less of a seasonal increase in listings than last year. Active New listings decreased to 774 in April from 1,108 in March, a decline of 334 units (Sect E p.3). Housing permits went up for Jefferson county to 120 for March up from 95 for February. (see website for details).

Absorption rate for New and Used homes is improving. New homes are at 6 months supply this month with a reduced sales pace, and better than last year at this time at 9 months (Sect E p.3). New home supply seems to be in a “normal” state. Under $100,000 New homes are at 14 months supply and improving. The New homes in the $100,000-$400,000 price range have an almost normal inventory level in the 6-7 month range. (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in April shows 10 months, four months better than 14 months last year. Used Active listings at 9,403 are lower than the 11,761 last year (Sect E p.3), (Sect E p.3).

Birmingham area Average Days on Market for New houses was 233 compared to last month at 194 . The Used homes DOM was 136 in April, compared with 146 last month (Sect A p.18). NOTE: DOM for Used Homes indicates that well priced homes are moving in less than 6 months. The high months of inventory indicates that sellers, including bank owners, are still holding out for higher prices. Again: If the home is not selling, reduce the price, particularly since we are in the most active sales season of the year.

Average sales price for Sold New homes decreased to $228,311 from $237,235 last month (Sect A p2). Average sales prices for Sold Used homes increased to $154,525 from $144,377 last month (Sect A p2). The twelve month moving average price line for Used Homes has been quite steady since mid 2009. Average Home prices, new and used, have stabilized  (Sect A p2). The price of any specific home still remains under pressure.

TWB 5/10/12

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Birmingham January Real Estate Sales Better Than Last Year

Birmingham Area MLS* Monthly Observations for January 2012

Sales in January declined 23% to $111,138,976 from December’s $144,973,823, up 7.6% from last January’s $103,296,527. The 12 month moving average line for total dollar sales remains tilted slightly upward.

Unit sales were down 22% to 753 in January from 963 in December, a decrease of 210. This is a 10% improvement from January 2010 at 684. This is 5% unfavorable to our preliminary projection of 792 sales expected for January. This error will be less as late sales are reported next month. Our full year projections will be revised when the final January 2012 unemployment rate is released in late March. New sales declined 37% to 82 homes this month from 130 in December, a decrease of 48 units. Used sales declined 19% to 671 homes in January from 833 last month, a decrease of 162 (Sect E p.3).

This month total inventory is dramatically lower at 9,812 vs. 12,183 last year and 10,414 last month. The significant drop in the current month is caused by month-end expirations which should come back on the market shortly. Active New listings decreased to 829 in January from 1,073 in December, a decline of 244 units (Sect E p.3).Housingpermits showed a decrease in Jefferson County to 64 in December from 77 in November. Shelby County was down to 6 from 19 (see website for details).

Absorption rate for New and Used homes is improving. New homes are at 7 months supply this month with a reduced sales pace, and even with last year at this time (Sect E p.3). New home supply seems to be stable. Under $100,000 New homes are at 16 months supply. The New homes in the $100,000-$500,000 price range have an almost normal inventory level in the 6-8 month range. (Sect C p.1 and Sect E p.3.)

Absorption for Used homes in January shows 10 months, three months better than 12 months last year. Used Active listings at 8,983 are lower than the 11,038 last year (Sect E p.3), (Sect E p.3).

Birmingham area Average Days on Market for New houses was 215 compared to last month at 209 . The Used homes DOM was 143 in January, compared with 141 last month (Sect A p.18). NOTE: DOM for Used Homes indicates that well priced homes are moving in less than 6 months. The high months of inventory indicates that sellers, including bank owners, are still holding out for higher prices. Again: If the home is not selling, reduce the price, particularly since we are in the slower sales season of the year.

Average sales price for Sold New homes increased to $243,501 from $237,784 last month (Sect A p2). Average sales prices for Sold Used homes decreased to $135,875 from $136,929 last month (Sect A p2). The twelve month moving average price line for Used Homes has been quite steady since mid 2009. Average Home prices, new and used, have stabilized  (Sect A p2). This is for the most part a reflection of the change of “mix” with more larger homes being sold, but the price of any specific home still remains under pressure.

TWB 2/11/12

Huntsville January Real Estate Slow But Slightly Better Than Last Year

Huntsville/North Alabama Area MLS Observations: Real Estate Market January 2012

January sales declined 28% to $79,170,046 vs. December at $110,622,406 This was virtually identical to last year at $79,352,342 The twelve month moving average line on the total dollar sales chart is flat.

Total unit sales decreased to 531 in January vs. 696 in December decreasing 165. This was favorable to last year at 504 sales.

Note that our projection for January was 507 so the actual results were 5% favorable, this will probably increase as late sales are reported. We will be revising the full year projections when the final un-employment statistics for January become available in late March.

New sales decreased to107 this month vs.180 last month, decreasing 73.
Used sales decreased to 424 this month vs. 516 last month, decreasing 92 (Sect E  p.3).

Used inventory levels remain high this month at 12 months (see the chart Sect C p.1), with the situation particularly challenged in the higher price ranges. Used homes over $100,000 are still over 12 months of inventory and over $400,000 have two or more years of inventory.

New home absorption is 9 months of inventory overall, (with last month at 10 months), (E-1). The New Home inventory level in the $300,000-$400,000 is approximately 5 months (not bad).

There continue to be a large number of housing permits issued in Huntsville city, given the market conditions. December decreased to 56  vs. 78  in November (chart on the web site).

Total Active listings decreased this month to 7,878 compared to last month’s 8,478, which is below last year at this time at 8,795 with the reduction exaggerated due to month-end expirations.
(Sect A p.4 and Sect E p.3).

Active New listings decreased from 1,527 last month to 1,271 in January, down 256. (Sect E p.3). Active Used listings decreased from 6,951 last month to 6,607 this month, down 344 and below last year’s amount at this time of 7,464. (Sect E p.3).

Average Days on Market for Sold New homes was 163 vs.177days last month, with Used at 167 in January compared with 142 in December (Sect A p.18). Days on Market at or below 6 months, while the inventory numbers are way higher, indicates well priced homes are selling. Sellers, including bank owners, who do not adjust to the new price reality contribute to the buildup of inventory.

Average sales price for Sold New homes was $229,697 vs. $238,973 last month. (Sect A p.2)
Average sales price for Sold Used homes was $128,756 vs. $131,022 last month. (Sect A p.2)

The Average price lines for Used homes, which was on a upwards slope for a while, has turned down. New homes average price seems to be showing some positive direction. Prices for individual properties remain under pressure.

TWB 2/11/12

September Huntsville Residential Sales Up From Last Year

Huntsville/North Alabama Area MLS Observations: Real Estate Market September 2011

September sales declined 6% to $129,011,381 vs. August at $137,864,729. This was 13% better than last year at $113,865,000 (as the tax incentive expired). The twelve month moving average line on the total dollar sales chart is poking up once again.Year to date sales are off 3.5% to $1,058,483,509 as compared to a year ago of $1,096,870,060. Unit sales were off 2% to 6,547 vs. 6651 a year ago. The modest drop in sales was achieved without the extraordinary tax incentives and thus reflects a more normal market.

Total unit sales decreased to 806 in September vs. 865 in August a decrease of 59.

New sales decreased to156 homes this month vs. 164 last month, a decrease of 8.

Used sales decreased from 650 homes this month to 701 last month, a  decrease of 51 (Sect E  p.3).

Used inventory levels remain high this month at 14 months (see the chart Sect C p.1), with the situation particularly challenged in the higher price ranges. Used homes over $100,000 are still over a year of inventory and over $400,000 have two or more years of inventory.

New home absorption is 9 months of inventory overall, (with last month at 11 months), (E-1). The New Home inventory level in the $300,000-$500,000 is approximately 6 months.

There continue to be a large number of housingpermits issued in Huntsville city, given the market conditions. August increased to 97 vs.113  in July (chart on the web site).

Total Active listings decreased this month to 8,867 compared to last month’s 9,718, which is below last year at this time at 9,907 (Sect A p.4 and Sect E p.3).  Active New listings decreased from 1,580 last month to 1,315 in September, down 265. (Sect E p.3). Active Used listings decreased from 8,138 last month to 7,552 this month, down 586 and below last year’s amount at this time of 8,370. (Sect E p.3).

Average Days on Market for Sold New homes was 152 vs.175 days last month, with Used at 152 in September compared with 155 in August (Sect A p.18). Days on Market at or below 6 months, while the inventory numbers are higher, indicates well priced homes are selling. Sellers, including bank owners, are not adjusting to the new price reality which contributes to inventory build-up.

Average sales price for Sold New homes was $231,891 vs. $222,435 last month. (Sect A p.2)

Average sales price for Sold Used homes was $142,825 vs. $144,630 last month. (Sect A p.2)

The Average price lines which were on a upwards slope for a while, turned down particularly for Used Homes. The fluctuation is mostly due to a changing mix of home sales with some more higher priced homes beginning to move as a proportion of the total market; prices for individual properties remain under pressure.

TWB 10/08/11

Year to Date Residential Sales On the Alabama Coast Surprisingly Strong

­­Baldwin County & Alabama Coastal MLS*: Observations for the Month of September 2011 

Dollar sales this month decreased 15% to $75,465,744 from August’s $88,583,253. This is 25% above September last year at $60,594,052 when sales were impacted by the oil spill and the tax credit expiration (Sect A p.2). The 12 month moving average line of sales is quite clearly on an upwards tilt. Year to date sales are up 20% to $698,334,308 vs $584,097,053 last year. Unit sales are up 18% to 3,414 vs. 2,903 last year. On a 9 month basis only 2004 and 2005 exceeded this unit volume. While inventories are high, unit sales have recovered to normal levels. Dollar sales still lag reflecting fewer high end sales and lower prices. Given the inventory level it is unlikely that prices will see much recovery for a while.

For the last year, the twelve month moving average line of dollar sales is trending up. On a unit basis, sales of all houses declined 13% to 364 this month vs. 418 last month, which is 31% up from last year’s 277.

Used Home sales declined 15% to 331 this month vs. 390 last month, which is up 35% from last year’s 245 (Sect A p.18). New Home sales were 33 this month vs 28 last month. Low sales of New homes reflects intense competition from existing, and the shutdown of new construction.

New listings for New homes increased to 42 from 66 in August. Used houses New listings decreased to 526 from 683 in August with net inventory still down.

The absolute number of Used Active homes on the market, which had a slight peak mid-summer of ‘09, has once again been improving. In September, there were 3,884 Active Used homes, a reduction from 4,391 in August. The New home market, which peaked in September 2006 at 2,144 Active, now sits at 334.

The Absorption rate for New homes was 13 months of inventory for September vs. 14 in August. The Absorption rate for Used homes was 12 months of inventory for September vs. 14 in August. Over the last four years the drop in months of inventory for Used homes has been steady and impressive from 25 months plus in September 2008 to 12 months in September.

Average sales price for all homes has been stable for the past year. For New units, prices decreased to $179,069 from $298,172 last month. (Sect A p.14). Average Used home prices increased to $210,140 from $205,729 in August.

Average Days On Market for New Sold properties in September was 188 this month vs. 303 last month. Days On Market for Used was 167 this month vs. 178 last month.

TWB 10/09/2011

Birmingham August Real Estate Sales Encouraging

Birmingham Area MLS* Monthly Observations for August 2011

Sales in August declined 5% to $196,084,532 from July’s $207,302,877, up 21% from last August’s $161,768,266.  This is a normal month to month fluctuation indicating a somewhat healthier market without the distortion caused by the expiration of last year’s tax credit. For the 1st time in two years the 12 month moving average line for total dollar sales is tilted slightly upward.

Total unit sales were down 4% to 1,170 in August from 1,223 in July, a decrease of 53. This is a 22% improvement from August 2010 at 956. New sales declined 22% to 121 homes this month from 156 in July, a decrease of 35 units. Used sales declined 2% to 1,049 homes in August from 1,067 last month, a decrease of 18 (Sect E p.3).

This month Total Inventory is lower at 11,778 vs. 13,959 last year. Active New listings decreased to 947 in August from 1,264 in July, a decline of 317 units (Sect E p.3).  Housingpermits showed a big increase in Jefferson County to 117 in July from 18 in June. Shelby County was down to 19 from 25 (see website for details).

Absorption rate for New and Used homes last month remained near record highs of 11 and 14 months respectively. Last month presents a more accurate picture due to late closings and listings that are not yet included in the current month statistics. (See the chart (Sect C p.1).

New homes at  8 months supply this month and a reduced sales pace, is one month worse than last year at this time (Sect E p.3). The situation remains distressed. New home supply seems to be accumulating. Strangely, under $100,000 New homes were at 8 months last month, and 11 this month. (Sect C p.1 and Sect E p.3.) New home inventories in higher price ranges (above $400,000), remain excessive at over a year.

Absorption for Used homes in August 2011 shows 10,831 Used Active listings as a lower number than 12,674 last year, (Sect E p.3) which is 13 months of supply, a bit better than 14 months last year (Sect E p.3). The listing activity is somewhat less than last year as is sales activity….

Birmingham area Average Days on Market for New houses was 199 compared to last month at 222. The Used homes DOM was 149 in August, compared with 145 last month (Sect A p.18). NOTE: DOM for Used Homes indicates that well priced homes are moving in less than 6 months. The high months of inventory indicates that sellers, including bank owners, are still holding out for higher prices, which is unlikely to be successful. Newsflash: If your home is not selling, reduce the price, this advice applies particularly since we are entering the slower sales season of the year.

Average sales price for Sold New homes increased to $241,233 from $238,345 last month (Sect A p2). Average sales prices for Sold Used homes decreased to $159,100 from $159,439 last month (Sect A p2). The twelve month moving average price line for Used homes has been quite steady since mid 2009 and is now showing an uptrend. Average Home prices, new and used have stabilized and show an upward trend (Sect A p2). This is mostly a reflection in the change of “mix” with more larger homes being sold, but the price of any specific home remains under pressure.

TWB 9/11/11

August Huntsville Residential Sales Holding Up

Huntsville/North Alabama Area MLS Observations: Residential Real Estate Market August 2011

August sales declined 2% to $136,819,154 vs. July at $139,485,960. This was 10% better than last year at $124,342,982 (just as the tax incentive expired). The twelve month moving average line on the total dollar sales chart is poking up once again.

Total unit sales increased from 834 in July to 854 in August, an increase of 20.

New sales decreased from 174 homes last month to 164 this month, a decrease of 10.

Used sales increased from 660 homes last month to 690 this month, an increase of 30 (Sect E  p.3).

Used inventory levels remain high this month at 14 months (see the chart Sect C p.1), with the situation particularly challenged in the higher price ranges. Used homes over $100,000 are still over a year of inventory and over $300,000 have two or more years of inventory.

New home absorption is 9 months of inventory overall, (with last month at 10 months), (E-1).  Interestingly, the New Home inventory level in the $300,000-$500,000 is slightly under 6 months.

There continue to be a large number of  housingpermits issued in Huntsville city, given the market conditions. July increased to 113 vs.93 in June (chart on the web site).

Total Active listings decreased this month to 9,069 compared to last month’s 9,785, which is below last year at this time at 9,770 (Sect A p.4 and Sect E p.3).  Active New listings decreased from 1,521 last month to 1,312 in August, down 209. (Sect E p.3). Active Used listings decreased from 8,264 last month to 7,757 this month, down 507 and below last year’s amount at this time of 8,322. (Sect E p.3).

Average Days on Market for Sold New homes was 175 vs.181 days last month, with Used at 155 in August compared with 156 in July (Sect A p.18). Days on Market at or below 6 months, while the inventory numbers are higher, indicates well priced homes are selling. Sellers, including bank owners, are not adjusting to the new price reality which contributes to inventory build-up.

Average sales price for Sold New homes was $222,435 vs. $229,268 last month. (Sect A p.2)

Average sales price for Sold Used homes was $145,420 vs. $150,899 last month. (Sect A p.2)

The Average price lines which were on a upwards slope for a while, turned down particularly for Used Homes. The fluctuation is mostly due to a changing mix of home sales with some more higher priced homes beginning to move as a proportion of the total market; prices for individual properties remain under pressure.

TWB 9/16/11