Thu, July 10th, 2008
BIRMINGHAM HOME SALES REPORT

Year to Date - May 2008

 

May home sales were behind the month of May a year ago by 30 percent, but we do have some good news. Inventory is below where it was a year ago, and average prices and median prices were up in May compared to a year ago. Also, total sales increased 10.6% from April to May 2008.

 

Stories about the economy get air time, especially if it’s bad news. The effect is cumulative. Washington Post columnist Neil Irwin says Americans are “gloomier than the economy”. In his June 18th article he reports consumer confidence is at its lowest level in almost 30 years. Only 12 percent of Americans think the economy is in good shape. He goes on to say that the internet is filled with opinion columns comparing today with the Great Depression.

 

Mr. Irwin’s response to this gloom is right on target: “The economy is NOT all that grim.” He says business is “holding up better than it did during the last two recessions in 1990 and 2001. Employers haven’t shed as many jobs, the unemployment rate is still relatively low, and gross domestic product has kept rising. Things are no where near as bad as they were in the Great Depression, or even during the severe recession of 1982-1983. The last time consumers were this miserable (May 1980) the jobless rate was 7.5 percent and inflation was 14.4 percent. Today these numbers are 5.5 percent jobless rate and 4.2 percent inflation.”

 

In summary he warns that negative attitudes can become a self-fulfilling prophecy. It’s a matter of perspective or outlook. “We have gotten so used to things being good…that even when conditions become somewhat bad, it feels terrible.”

 

Real Estate agents are listing and selling houses. Birmingham MLS members have sold nearly 5,500 homes since the first of the year. Don’t compare this year with last year or the year before because 2006 and 2007 were record sales years for our MLS. Let’s focus on the positive right here and now:  homes are selling.

 

Last year’s sales in May were record-breaking. May 2007 was a huge month for home closings…the best May in history. This makes it more difficult, having to compare this May with May 2007 numbers.

 

May sales are 10.6% ahead of April sales. Home sales usually increase from April to May and this year is no exception.

 

Current conditions are ideal for buyers. Prices have moderated. Year-to-date average prices in MLS show a 1.6% decrease. These conditions won’t last long. Now is a great time to make an offer on a home.

 

Inflation fears are in the news. Despite the fact that interest rates are low; sellers are motivated; and prices have moderated, many buyers are still sitting on the fence, waiting for things to “bottom out.” Inflation fears are in the news. Waiting is a risky game. If monetary policy shifts to combating inflation, mortgage rates may go up. Now really is the time to buy.

 

Mortgage loans are available. Contrary to perceptions, conventional mortgages are widely available.

 

Inventory is wide-ranging with many choices in prices and architectural styles.

 

Home ownership is the best investment. Home ownership has been – and continues to be – one of the best investments. Nine out of ten Americans consider home ownership to be a sound financial decision. Real estate has delivered the most consistent positive return over any other investment over the last 40 years.

 

YEAR-TO-DATE STATISTICS:

 

2008 Total Sales: 5,449

2007 Total Sales: 7,372

Difference represents a 26% decline

 

2008 Average Price: $193,563

2007 Average Price: $196,746

Year-to-date comparison shows a 1.6% decline in average price

 

2008 Median Price: $158,600

2007 Median Price: $157,900

No significant % difference

 

2008 Average Days on Market: 105* adjusted to exclude new construction

2007 Average Days on Market: 94* adjusted to exclude new construction

 

 

YEAR-TO-DATE  REGIONAL STATISTICS:

 

NORTH

2008 Total Sales: 401

2007 Total Sales: 467

Difference represents a 14% decline

 

SOUTH

2008 Total Sales: 2,585

2007 Total Sales: 3,587

Difference represents a 30% decline

 

EAST

2008 Total Sales: 1,468

2007 Total Sales: 2,028

Difference represents a 28% decline

 

WEST

2008 Total Sales: 995

2007 Total Sales: 1,290

Difference represents a 23% decline

 

 

 

MAY STATISTICS:

 

2008 Total Sales: 1,277* Fewest closings for a May reporting period since 2002

2007 Total Sales: 1,836* Most closings ever for a May reporting period

Difference of 559 sales or a 30% decline

 

2008 Average Price: $205,371

2007 Average Price: $202,800

Represents a 1.3% increase

 

2008 Median Price: $172,400

2007 Median Price: $164,300

Represents a 5% increase

 

2008 Average Days on Market: 100* adjusted to exclude new construction

2007 Average Days on Market: 93* adjusted to exclude new construction

 

 

RESIDENTIAL INVENTORY IN MLS:

TOTAL LISTINGS ON THE MLS:

 

2008:

May:  12,458

April:  12,365

March:  12,121

February: 11,919

January: 11,757

 

2007:

December:  12,642

November: 12,979

October: 13,438

September: 13,560

August: 13,582* highest recorded

July: 13,477

June: 13,294

May: 13,183

April: 12,895

March: 12,524

February: 10,840

January: 10,330

 

These statistics compare total residential sales for May 2008 vs. May 2007 as well as Year-to-Date statistics as compiled by the Birmingham Area Multiple Listing Service, Inc. of the Birmingham Association of REALTORS®.

 

Neither the Birmingham Association of REALTORS® nor its MLS guarantees or is in any way responsible for its accuracy. Any market data maintained by the Association or its MLS does not necessarily include information on listings not published at the request of the seller, listings of brokers who are not members of the Association or MLS, unlisted properties, rental properties, etc.

Posted by Christina Rickey at 07:16 | Permalink |