Thu, August 7th, 2008
FIRST HALF OF 2008 RESIDENTIAL SALES REPORT

 

MID-YEAR & JUNE 2008

HOME SALES

 

After 7 consecutive record growth years, mid-year and June homes sales statistics of the Birmingham area residential real estate market show that things have slowed down considerably. Total sales are down, as are prices, yet there are some positive signs: MLS inventory is moving in the right direction with 12,580 listings in June compared to 13,294 a year ago. The Mid-year report shows the average price of Birmingham area homes has dropped only 2% which is significantly less than what is happening in other markets around the country. It’s a buyer’s market here, with many homes to choose from in all price ranges.

 

Other positive signs have been noted. Foreclosures in the Birmingham metro area dropped 17 percent in June 2008 compared to a year ago. Birmingham’s foreclosures place the city 97th out of a list of 100 major U.S. cities surveyed. The state of Alabama is 45th out of 50 for foreclosures (source: RealtyTrac).

 

Realtors are listing and selling houses. Birmingham MLS members have sold over 6,700 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 the Birmingham MLS.

 

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.

 

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.

 

JUNE REPORT

 

June 2008 Total Sales: 1,253

June 2007 Total Sales: 1,929

This represents a 35% decrease in total sales for this month

 

June 2008 Average Price: $196,504

June 2007 Average Price: 208,767

This represents a 5.4% decrease in average price for this month

 

June 2008 Median Price: $164,400

June 2007 Median Price: $170,000

This represents a 3.5% decrease in median price for this month

 

June 2008 Days on Market: 93* adjusted to exclude new sales

June 2007 Days on Market: 89* adjusted to exclude new sales

 

June 2008 Inventory: 12,580

June 2007 Inventory: 13,294

This represents 714 fewer listings in the MLS for this month

 

 

MID-YEAR REPORT (January through June)

 

2008 Total Sales: 6,702

2007 Total Sales: 9,317

This represents a 28% decrease in total sales

 

2008 Average Price: $194,000

2007 Average Price: $198,597

This represents a 2% decrease in average price

This may be a bit of good news…prices have not dropped as much as markets elsewhere

 

2008 Median Price: $159,600

2007 Median Price: $159,900

No statistical variance…again, a bit of good news

 

2008 Days on Market: 103* adjusted to exclude new sales

2007 Days on Market: 93* adjusted to exclude new sales

 

 

 

MID-YEAR REGIONAL REPORT:

 

2008 NORTH Total Sales: 480

2007 NORTH Total Sales: 590

This represents an 18.6% decrease

 

2008 SOUTH Total Sales: 3,191

2007 SOUTH Total Sales: 4,548

This represents a 30% decrease

 

2008 EAST Total Sales: 1,803

2007 EAST Total Sales: 2,553

This represents a 29% decrease

 

2008 WEST Total Sales: 1,228

2007 WEST Total Sales: 1,594

This represents a 23% decrease

 

 

RESIDENTIAL INVENTORY IN MLS:

YEAR/MONTH: TOTALS FOR SALE:

2008:

June 12,580

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 June 2008 vs. June 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 08:28 | Permalink |