Thu, December 11th, 2008
NOVEMBER MARKET UPDATE

Broker Report:

Year-to-date and November 2008

 HOME SALES

 

Year-to-date and November home sales in the Birmingham area are down, as are prices, but we have some positive news. MLS inventory continues to move in the right direction with 10,994 listings in November compared to 12,979 in November 2007. This represents 1,985 fewer listings in MLS now compared to one year ago or a 15 percent drop. The Year-to-date report shows the average price of Birmingham area homes has dropped 4.5% which is less than other markets around the country.

 

When will the home sales market rebound?  No one knows.  Rob Couch, former General Counsel for HUD for the Bush Administration, was guest speaker at the BAR Broker Meeting held November 24th.  He indicated that there are many variables affecting the economy. In addition, reporting of negative economic news continues to shake consumer confidence. As a result, buyers are sitting on the fence, waiting to see what happens. Some are concerned for their job stability, or they believe they will be unable to sell their existing house quickly, so they are waiting to buy.

 

Some good news!

 

SmartMoney Magazine (November 2008 issue) lists Birmingham as the number 2 market in the nation in a survey of the top 25 cities “ready to rebound”.

 

Homes right now are more affordable; mortgage rates are at historic lows; and sellers are motivated.  Sellers, worried about getting less than the asking price for their existing homes, may be able to make up the difference with the current lower mortgage rates and a more affordable price on their next buy.

 

Foreclosures are not as difficult a factor in the Birmingham area market as in other areas of the country.

 

As the current buyers market gives way to a more balanced market, demand for homes will increase.  When buyers get back, competition for available homes will increase and prices will be affected.

 

Real estate remains the best investment a person can make and we believe that housing will lead the way to a national economic recovery.

 

 

November Report

November 2008 Total Sales: 603

November 2007 Total Sales: 1,183

 

This represents a 49% decrease…the lowest number of closings for a November in over 12 years.  The September 2008 Wall Street crisis has contributed to the slow down of November closings.

 

Here is a quick look at November prices in recent years:

 

Nov 2008: 603

Nov 2007: 1,183

Nov 2006: 1,485

Nov 2005: 1,302

Nov 2004: 1,126

Nov 2003: 926

Nov 2002: 922

Nov 2001: 790

Nov 2000: 701

Nov 1999: 790

Nov 1998: 769

Nov 1997: 631

 

 

November 2008 Average Price: $179,837

November 2007 Average Price: $193,391

 

This represents a 7% decrease in average price for this month.

The year-to-date average price is now 4.5% behind last year.

 

Here is a quick look at November average prices in recent years:

 

Nov 2008: $179,837

Nov 2007: $193,391

Nov 2006: $189,640

Nov 2005: $188,640

Nov 2004: $184,732

Nov 2003: $161,919

Nov 2002: $162,848

Nov 2001: $164,353

Nov 2000: $154,518

 

 

November 2008 Median Price: $139,900

November 2007 Median Price: $158,000

 

This represents an 11% decrease in median price for this month.

The year-to-date median price is now 3.6% behind last year.

 

Here is a quick look at November median prices in recent years:

Nov 2008: $139,900

Nov 2007: $158,000

Nov 2006: $159,900

Nov 2005: $160,000

Nov 2004: $155,000

Nov 2003: $135,300

Nov 2002: $140,750

Nov 2001: $129,950

Nov 2000: $127,000

 

November 2008 Days on Market: 92* adjusted to exclude new construction sales

November 2007 Days on Market: 103* adjusted to exclude new construction sales

 

November 2008 Inventory: 10,994

November 2007 Inventory: 12,979

This represents 1,985 fewer listings in the MLS for this month or a 15% decrease

 

 

 

YEAR-TO-DATE REPORT

(January through November)

 

2008 Total Sales: 11,656

2007 Total Sales: 16,300

This represents a 28% decrease in total sales

 

2008 Average Price: $189,786

2007 Average Price: $198,710

This represents a 4.5% decrease in average price

 

2008 Median Price: $154,600

2007 Median Price: $160,400

This represents a 3.6% decrease in median price

 

2008 Days on Market: 99* adjusted to exclude new construction sales

2007 Days on Market: 96* adjusted to exclude new construction sales

 

 

 

YEAR-TO-DATE REGIONAL REPORT:

 

2008 NORTH Total Sales: 823

2007 NORTH Total Sales: 1,036

This represents a 20% decrease

 

2008 SOUTH Total Sales: 5,351

2007 SOUTH Total Sales: 7,913

This represents a 32% decrease

 

2008 EAST Total Sales: 3,309

2007 EAST Total Sales: 4,494

This represents a 26% decrease

 

2008 WEST Total Sales: 2,173

2007 WEST Total Sales: 2,857

This represents a 24% decrease

  

 

These statistics compare total residential sales for November 2008 vs. November 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 02:53 | Permalink |