Taking a Look at Birmingham Real Estate for September 2014

Last month, in our ongoing effort to cover Birmingham real estate, we covered real estate statistics from this summer. Since then, the Alabama Center for Real Estate (ACRE) has released updated statistics from the month of September. These stats are important to review because September is often a transition month in local real estate, one in which buying and selling both begin to taper off headed toward the winter months. The first stat we’ll examine is the median home price. For the state, it stood at $129,511, an increase of 4.51 percent from September 2013. In Birmingham, it was $175,000, with an average price of $215,830. As we anticipated, prices are continuing to rise on a month-to-month basis. Supply is still decreasing across the state. There were 32,992 homes listed, a drop of 2.49 percent. In Birmingham, that figure stood at 7,099, which is 21.5 percent of the state total (or a little over one in five). There are eight months of supply in the statewide market, and only six months of supply in Birmingham’s market – suggesting that the metro area is in equilibrium with a balance between buyers and sellers. This is one of the first times we have seen the beginnings of a balanced market in this area. Homes aren’t taking as long to sell, either; the median days on market figure stood at 148 (81 in Birmingham), down by eight percent from the 161 days homes spent on the market in September 2013. Compared to other parts of the nation, 81 is high, but it is significantly lower than it has been over the past few years. As supply continues to dwindle, this figure should drop, and homes should not only sell faster, but should also sell for more. Conditions are still ripe for purchasing, and are improving as far as rental rates and vacancy rates are concerned. We anticipate that the rental market will continue to increase through the end of 2014, based on current trends.