Rising home sales continue in the Birmingham area in February

Sales: According to the Greater Alabama MLS, February home sales in the Birmingham area increased 11.1% year-over-year (Y/Y) from 1,126 to 1,251 closed transactions, marking nine consecutive months of Y/Y gains. Sales are now up 16.3% year-to-date. Following seasonal trends, sales increased 5.1% from January. Two more resources to review: Quarterly Report and Annual Report.

For all Birmingham-area housing data, click here.

Inventory: Homes listed for sale decreased 29.1% year-over-year from 4,290 listings one year ago to 3,042 in February. Months of supply (inventory to sales ratio) decreased from 3.8 to 2.4, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in February was $249,900, an increase of 12.1% from one year ago and an increase of 6.3% from January. 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 February averaged 28 days on the market (DOM), 14 days faster than February 2020.

Forecast: February sales were 127 units, or 9.2%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,378 sales for the month, while actual sales were 1,251 units. ACRE forecast a total of 2,567 sales year-to-date, while there were 2,441 actual sales through February, a difference of 4.9%.

New Construction: The 204 new homes sold represent 16.3% of all residential sales in the Birmingham area in February. Total sales increased 29.1% year-over-year. The median sales price in February was $297,844, an increase of 2% from January and a decrease of 13.3% 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 February 1 – 28, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.

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