Rising home sales continue in the Birmingham area in January

Sales: According to the Greater Alabama MLS, January home sales in the Birmingham area increased 22.3% year-over-year (Y/Y) from 973 to 1,190 closed transactions, marking eight consecutive months of Y/Y gains. Following seasonal trends, sales decreased 24.4% from December. Two more resources to review: Quarterly Report and Annual Report.

For all Birmingham-area housing data, click here.

Inventory: Homes listed for sale decreased 19.9% year-over-year from 4,038 listings one year ago to 3,236 in January. Months of supply (inventory to sales ratio) decreased from 4.2 to 2.7, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in January was $235,000, an increase of 9.8% from one year ago and a decrease of 2.1% from December. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

Homes sold in January averaged 26 days on the market (DOM), 15 days faster than January 2020.

Forecast: January sales were 1 unit, or 0.01%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,189 sales for the month, while actual sales were 1,190 units.

New Construction: The 147 new homes sold represent 12.4% of all residential sales in the Birmingham area in January. Total sales decreased 1.3% year-over-year. The median sales price in January was $343,500, an increase of 10.5% from December and an increase of 22.1% from one year ago.

Click here to view the entire monthly report.

The Birmingham Area Residential Monthly Report is developed in connection with the Birmingham Association of Realtors.

Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period January 1 – 31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.

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