Sales: According to the Greater Alabama MLS, July home sales in the Birmingham area increased 4.9% year-over-year (Y/Y) from 1,794 to 1,881 closed transactions, marking 14 consecutive months of Y/Y gains. Following seasonal trends, sales decreased 5.0% from June. Sales are now up 19.5% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all Birmingham-area housing data, click here.
Inventory: July listings (3433) increased 10.4% from June but declined 24.6% from one year ago. At the current sales pace, all the active inventory on the market would sell in 1.8 months, up from 1.6 months in June and down from 2.5 months in July 2020. The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply
Pricing: The median sales price in July was $265,000, an increase of 6.0% from one year ago and a decrease of 3.6% from June. 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 July averaged 5 days on the market (DOM), a record low and 25 days faster than July 2020.
Forecast: July sales were 44 units, or 2.3%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,925 sales for the month, while actual sales were 1,881 units. ACRE forecast a total of 11,807 sales year-to-date, while there were 11,488 actual sales through July, a difference of 2.7%.
New Construction: The 190 new homes sold represent 10.1% of all residential sales in the Birmingham area in July. Total sales decreased 17.0% year-over-year. The median sales price in July was $306,800, a decrease of 0.4% from June and an increase of 0.1% from one year ago.
NAR Commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased for the second consecutive month in July rising 2% from June (seasonally adjusted annual rate). July sales were up 1.5% from one year ago. The median sales price for existing homes was $359,900, rising 17.8% year-over-year and marking 113 consecutive months of year-over-year gains. Rising home prices are largely a result of low housing inventory amid significantly elevated demand. Supply did improve somewhat, rising 7.3% from June 2021 and is down 12% from one year ago. July’s 2.6 months of supply increased slightly from June (2.5) but is still well below July 2020 (3.1).
Lawrence Yun, chief economist for NAR said, “We see inventory beginning to tick up, which will lessen the intensity of multiple offers. Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren’t seeing as much growth because there are still too few starter homes available.”
Yun added that home prices are likely to moderate in the months ahead, “Although we shouldn’t expect to see home prices drop in the coming months, there is a chance that they will level off as inventory continues to gradually improve.”.
ACRE Commentary: Home sales in Alabama decreased year-over-year (Y/Y) in July, falling 1.4% (seasonally unadjusted). Sales also declined month-over-month, down 7.7% from June. Year-to-date, however, sales are up 17.3% from 2020. The statewide median sales price reached another record high of $218,374 with sales price growth rates moderating somewhat, rising 11% Y/Y. The state’s housing supply received a much-needed measure of relief as listings increased 12% from June, but are still down 29.3% from one year ago. With slowing sales and rising inventory, months of supply increased from 1.2 in June to 1.5 in July. Listings are also expected to gradually increase in the coming months.
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 July 1 – 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.