Birmingham-area home sales remain elevated in March

Sales: According to the Greater Alabama MLS, March home sales in the Birmingham area increased 22.5% year-over-year (Y/Y) from 1,375 to 1,684 closed transactions, marking 10 consecutive months of Y/Y gains. Following seasonal trends, sales increased 34.6% from February. Sales are now up 18.7% year-to-date. Two more resources to review: Quarterly Report and Annual Report.

For all Birmingham-area housing data, click here.

Inventory: Homes listed for sale decreased 30.4% year-over-year from 4,435 listings one year ago to 3,086 in March. Months of supply (inventory to sales ratio) decreased from 3.2 to 1.8, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in March was $258,150, an increase of 5.4% from one year ago and an increase of 3.3% from February. 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 March averaged 25 days on the market (DOM), 11 days faster than March 2020.

Forecast: March sales were 9 units, or 0.5%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,693 sales for the month, while actual sales were 1,684 units. ACRE forecast a total of 4,260 sales year-to-date, while there were 4,125 actual sales through March, a difference of 3.2%.

New Construction: The 238 new homes sold represent 14.1% of all residential sales in the Birmingham area in March. Total sales decreased 4.4% year-over-year. The median sales price in March was $311,690, an increase of 4.6% from February and an increase of 6.4% 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 March 1 – 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.

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