Home Sales and Median Sales Price Both up for Birmingham Real Estate

The latest figures from the Greater Alabama MLS suggest that Birmingham real estate is continuing to improve – putting the area’s market in a great position moving into 2014. According to the figures, year-to-date residential sales moved up 9.8% from November 2012, with a total number of 10,970 units. The number for this month did drop compared to November 2012’s totals, though, by 2.1%. Still, the real news for this stat is that 9.8% more homes have been sold over the past year. Also, the number of homes sold last month is well above both the three-year average and five-year average for November. More homes being sold ultimately indicates a stronger real estate market overall, which will undoubtedly give real estate investors more options to purchase affordable real estate for flipping or for rental income. Median Sales Prices Also Increase To further establish this progress, median sales prices went up as well both monthly (by 2.9% from October) and year-over-year (9.9% from November 2012). For November, the median price stood at $166,042. Existing single-family homes were priced at a median value of $155,000; for condos, that figure was $139,000; for new construction, it was $246,420. Notably, the median value of condos almost doubled from this point last year to now. Days On Market Decrease A telling figure of a real estate market’s liquidity is the days on market (DOM) figure. November’s Dom registered at 83, 17.8% lower than it was last year. In October, that number was two days lower at 81, but monthly fluctuation is largely expected. On balance, days on market have gone down over the past five years by 17.2%. The figure is a good bit lower than the national median DOM figure, which stands currently at 94. That figure is also down annually by 11.32%. Conclusions As a whole, the Birmingham real estate market is improving and becoming more liquid. More homes are selling faster and for more money. We expect these trends to continue through the beginning of 2014, and anticipate a year similar to 2013 in terms of overall performance. As long as home affordability remains high, prospects look strong.