Taking a Look at Birmingham Real Estate Statistics

As we get deeper into the fall season, it’s good to take a deeper look at real estate statistics that give us insight about the market’s various trends. Earlier, we covered Alabama real estate statistics as provided by the Alabama Center for Real Estate (ACRE). This week, we thought we’d delve a bit deeper into Birmingham real estate statistics that shine some light on trends within the greater metro area, from Homewood to Hoover and from Mountain Brook to Vestavia. The first number that pops out is 6.2 – which is 6.2 months of housing supply for the month of August. Last year, in August 2013, there were 6.7 months. Over the past year, we have seen a 7.5 percent decrease in the amount of available supply at today’s current sales rates. What’s the takeaway from this? In August, equilibrium – the point in a market at which neither buyers nor sellers have an advantage – is anywhere from six to seven months of supply, so we’re right at the edge of a seller’s market in the Birmingham metro area. This past month reported 1,187 homes sold, which is roughly the same as it was last year. There is one key distinction we’d like to make about this figure: it’s above the 1,000-unit threshold, which is the symbolic mark that signifies a healthy real estate market. Birmingham real estate routinely eclipsed this mark prior to the market crash, and we’ve been hitting this figure for the past six months in a row. In terms of supply, there were 7,391 homes in the active inventory in August. This was down 0.4 percent from July and down 6.7 percent from last year. This wasn’t unexpected; we actually anticipate supply to continue to fall throughout the rest of the year. Demand decreased as well, dropping by 10.1 percent from July. Historically, demand increases from July by one percent. A decline in sales isn’t unheard of; peak selling begins in June and declines through the fall/winter selling season. Finally, prices continue to increase. Median sales prices rose by five percent from last year and two percent from last month, suggesting that Birmingham real estate continues to be worth more than it has been over the past few years – a strong trend that hasn’t shown signs of decreasing.