Mon, March 15th, 2010
SAVE THIS DATE - ANSWER ALL YOUR QUESTIONS ABOUT THE…

Posted by NHB at 04:45 | Permalink | 0 Comments

Thu, July 23rd, 2009
IT’S GETTING BETTER!

Home Sales Report

 June 2009

Birmingham area home sales in 2009 continue to increase each month: 

January:          564 Units 

February:        725

March:            854

April:              887

May:               959

June:            1090

Median prices have increased each month, indicating that a wider price range of homes are now being sold in the Birmingham Area MLS. Fewer foreclosures each month may also be having an effect. The average prices are also on the increase (Note: February was higher than March & April):  

Jan Average Price:        $151,584          Jan Median Price:          $129,900

Feb Average Price:        $171,062          Feb Median Price:         $130,000

Mar Average Price:        $160,929          Mar Median Price:         $138,000

Apr Average Price:        $165,540          Apr Median Price:         $141,000

May Average Price:       $185,713          May Median Price:         $156,000

Jun Average Price:        $189,332          Jun Median Price:         $160,000  

Foreclosure sales: The June report shows a total of 315 foreclosure sales representing 29% of the total. The 278 foreclosures sold in May represented 29% of the total. The 305 foreclosure sales in April represented 38% of the total. This compares to 40% of the total in March and 39% of the total in February and 45% of the total for January.  

The average foreclosure price in June was $80,273 compared to May which was $80,376. The average foreclosure price in April was $76,085, the March foreclosure price was $66,959, the February foreclosure price was $78,044, and the January foreclosure price was $75,697.  

When comparing June 2009 sales with June 2008, sales were down by 13% but the average price in June 2009 was only 4% behind the average one year ago and the median price was down only 3% from last year. In previous months the average price has been as much as 15% to 21% behind the same reporting period from the previous year.  

Birmingham area home sales market is #20 in national report: The Brookings Institution report shows Birmingham is one of the strongest metro areas in the nation when it comes to home price stability. The numbers, provided by The Birmingham News ranks cities based on the change in the home price index from the first quarter of 2008 to the first quarter of 2009. Birmingham placed number 20 on the list showing a 2 percent rise. Houston led the list with a 4.7 percent rise. The average American city declined 6.3 percent according to the report.  

The statistics in this report compare total residential sales 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.

Posted by NHB at 08:25 | Permalink | 0 Comments

Fri, February 27th, 2009
SORTING THE PIECES OF…

The American Recovery and Reinvestment Act of 2009

On Tuesday, February 17, 2009, the American Recovery and Reinvestment Act of 2009 (H.R.1) was signed into law by President Obama. The $787 billion economic stimulus package will impact a vast number of areas in the U.S. economy and the President is hopeful that the broad spectrum spending injection will initiate upward movement in all economic and geographic areas of the United States.

The real estate market benefited from a number of the Act’s provisions.

(1) Homebuyer Tax Credit – “The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.”

 (2) FHA, Fannie Mae and Freddie Mac Loan Limits – “The bill reinstates last year’s 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750.”

(3) Neighborhood Stabilization – “Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2009 (Public Law 110-289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties.”

(4) Commercial Real Estate – “Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commercial property owners’ investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program.”

(5) Low Income Housing Grants – “Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.”

(6) Rural Housing Service - “The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program’s eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.”

Important Note:  The information presented does not purport to contain all of the specifics of each category and should not be counted on to give all of the requirements for each item. They are high level overviews only and cannot be guaranteed to be free from error or to contain all of the specific requirements. Please review all programs that you are considering at length with a qualified professional, lawyer or with the specific government agencies for full and complete details to participate in the programs

Posted by Christina Rickey at 07:50 | Permalink | 0 Comments

Thu, January 22nd, 2009
2008 ANNUAL HOME SALES BROKER REPORT

Total home sales in 2008 were down 29% compared to 2007.  Average prices were down 5%.  Median prices were down 4.3%.  Average days on market were 100 days compared to 96 in 2007.  MLS inventory continues to drop; 10,201 listings at year’s end compared to 12,642 in 2007 which is a 19% drop.  Total home sales in December 2008 were 32% behind December 2007.  The average price in December 2008 was 9% lower than December 2007.  The median price was down 12.5%.  These statistics point to a difficult, serious slowdown in the local real estate market.

Some good news…

Real estate will rebound; it is just a matter of time.  Eight out of ten economists say home prices will rise in the next 5 years. This figure is based on 2008 findings by the Keller Center for Research at Baylor University.

SmartMoney Magazine (November 2008 issue) listed Birmingham as the number 2 market in a survey of 25 American cities “ready to rebound”. Birmingham area home prices were down 5% in 2008, BUT the national average was closer to 11%.  California prices dropped 32%. Unemployment rates in the Birmingham area were 5.2% in November which compares favorably with the state of Alabama at 6.1%. The national unemployment rate was 7.2% in December.

One of the worst obstacles we face…is fear. Sellers are afraid they will not be able to sell and they worry about losing their homes.  Buyers are scared. Some are so afraid they won’t act. They remain out there; sitting on the fence; waiting for someone or something to give them the “green light” to make a move.

Feeding this fear factor is the “24/7 media machine.

BIRMINGHAM AREA MLS

HOME SALES REPORT

* Numbers based on MLS records for Jefferson, Shelby, St. Clair and Blount counties. DOM adjusted to exclude new home sales.

December 2008 Total Sales represents a 32% decrease.

The December 2008 Average Sales Price represents a 9% decrease compared to November 2007.  The average price for the 2008 is 5% behind last year.

December 2008’s median sales price represents a 12.5% decrease compared to one year ago.  The median price for the year is 4.3% behind last year.

2008 vs. 2007 Annual MLS Activity:

These statistics compare total residential sales for December 2008 vs. December 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 03:36 | Permalink | 0 Comments

Wed, January 7th, 2009
SOUTHWARD BOUND!

Alabama rates high for inbound moves, United Vans Lines says…

People are moving into Alabama faster than they are moving out, at a rate that surpasses all other Southern states, a new study finds.  

St. Louis-based United Van Lines, a moving company, classified Alabama as a “high inbound” state in its annual tracking of interstate household moves in 2008, with 58.1 percent of moves going into the state.

Alabama was the only Southern state represented on the high inbound list last year. Nationwide, the Mid-Atlantic and Western regions are the most popular destinations for movers. The District of Columbia reigns as the top destination.

Meanwhile, there’s an overall outbound trend in the Great Lakes region. Michigan retained its title as the top outbound spot, with 67.1 percent of moves last year coming out of the state. 

Posted by Christina Rickey at 09:08 | Permalink | 0 Comments

Thu, December 18th, 2008
DREAM BIG–INTEREST RATES TUMBLED!

Mortgage rates at 37-year low - If you are dreaming about a new home, your dream can become a reality!  Interest rates reached historical lows this week.  Read the following which was posted by the AP today: 

WASHINGTON (AP) - Rates on 30-year-fixed mortgages dropped this week to their lowest levels in at least 37 years, as the Federal Reserve pledged to pour money into the mortgage market in an effort to spur the sluggish U.S. housing market.  Freddie Mac, the mortgage company, reported Thursday that average rates on 30-year fixed-rate mortgages dropped to 5.19 percent, down from the year’s previous low of 5.47 percent, set last week.  The rate is the lowest since Freddie Mac’s weekly mortgage rate survey began in April 1971.

Mortgage rates started falling after the Federal Reserve launched a sweeping new effort in late November to aid the U.S. housing market by purchasing up to $600 billion of mortgage-related securities and other debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.  A daily survey found that the national average rate fell even lower Wednesday. Rates on 30-year, fixed mortgages was 5.06 percent, according to financial publisher HSH Associates, the lowest since the 1960s and down from 5.3 percent Tuesday.  It was the best news in months for anyone looking to lock in a 30-year, fixed-rate mortgage. But it was not expected to be a cure-all, and borrowers already in danger of foreclosure probably won’t be able to take advantage because only borrowers with stellar credit can qualify.  “It’s a call to action for homeowners looking to get out of adjustable-rate mortgages,” said Greg McBride, senior financial analyst at Bankrate.com. “Unfortunately, it’s not an equal-opportunity party.”

Meanwhile, rates this week fell on 15-year fixed-rate mortgages to an average of 4.92 percent, down from 5.2 percent last week, Freddie Mac said.  Rates on five-year, adjustable-rate mortgages fell to 5.6 percent, compared with 5.82 percent last week. Rates on one-year, adjustable-rate mortgages dropped to 4.94 percent, from 5.09 percent last week.  The rates do not include add-on fees known as points. The nationwide fee for 30-year and 15-year mortgages averaged 0.7 point last week. The fee on five-year, adjustable-rate mortgages averaged 0.6 point, while the fee on one-year adjustable-rate mortgages averaged 0.5 point.  Mortgage application volume jumped last week, fueled by borrowers seizing on lower rates to refinance home loans, the Mortgage Bankers Association said Wednesday.  The trade group’s seasonally adjusted application index rose 2.9 percent for the week ended Dec 12.

The Federal Reserve, aiming to free up lending and jolt the economy back to life, on Tuesday cut the federal funds rate from 1 percent to a target range of zero to 0.25 percent and pledged to keep funneling money into the market for mortgage investments.  Mortgage brokers are already reporting a surge of calls from borrowers trying to take advantage of the Federal Reserve’s extraordinary actions.  On Wednesday, some mortgage brokers were quoting interest rates of close to 4.5 percent for people with strong credit and hefty down payments.

Falling interest rates mean Americans could suddenly find billions of extra dollars in their pockets at a time when consumers have sharply cut back on spending in the face of rising unemployment and declining household wealth.

The inventory is great, sellers are motivated, interest rates are low.  So, tell your sons and daughters, friends, and acquaintances the window of opportunity is now!

Posted by Christina Rickey at 12:07 | Permalink | 0 Comments

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 | 0 Comments

Mon, December 8th, 2008
RATES ARE DROPPING TO HISTORIC LOWS…

Have you been curious as to what the recent historic rate drop has meant to a buyer’s bottom-line?   Here’s a quick snap shot:

$400,000 Loan Amount on Friday (11/21) at 6.375% = P&I $2,496
$400,000 Loan Amount on Friday (12/05) at 5.125% = P&I $2,178 
That’s a $318  per month savings!!  OR   you can afford 13% more house with the same P&I payment!!
NOTE: a $400K loan amount at 5.125% is comparable to a $348K loan amount at 6.375%

$300,000 Loan Amount on Friday (11/21) at 6.375% = P&I $1,871
$300,000 Loan Amount on Friday (12/05) at 5.125% = P&I $1,633 
That’s a $238  per month savings!!  OR   you can afford 13% more house with the same P&I payment!!
NOTE: a $300K loan amount at 5.125% is comparable to a $261K loan amount at 6.375%

$200,000 Loan Amount on Friday (11/21) at 6.375% = P&I $1,248
$200,000 Loan Amount on Friday (12/05) at 5.125% = P&I $1,089 
That’s a $159  per month savings!!  OR   you can afford 13% more house with the same P&I payment!!
NOTE: a $200K loan amount at 5.125% is comparable to a $174K loan amount at 6.375% 

$100,000 Loan Amount on Friday (11/21) at 6.375% = P&I $624
$100,000 Loan Amount on Friday (12/05) at 5.125% = P&I $545   
That’s a $79 per month savings!!  OR   you can afford 13% more house with the same P&I payment!!
NOTE: a $100K loan amount at 5.125% is comparable to a $87,000K loan amount at 6.375% 

Please tell your sons, daughters, and friends, now is a great time to buy!  Have them give me a call, I am always available to answer their questions and update them on the Birmingham real estate market.  

Posted by Christina Rickey at 09:58 | Permalink | 0 Comments

Wed, November 19th, 2008
ALABAMA HOMES LESS AFFORDABLE

The affordability of homes in Alabama dropped nearly 8 percent in the third quarter compared to the previous quarter, while it rose nearly 2 percent in the Birmingham area, according to the Alabama Center for Real Estate at the University of Alabama.

The statewide housing affordability index dropped to 154.4 in the third quarter of this year, compared to 167.4 in the second quarter.

An index of 100 means a family earning the state’s median income can qualify for a loan on a median-priced home in the state, therefore the higher the index the more affordable the housing, said the center in a news release.

The decline was a result of an increase in the median sales price of Alabama homes from $132,420 to $139,591 and an increase in the composite monthly interest rate to 6.39 percent from 6.12 percent in the second quarter, the report stated.

The center said the drop in the state’s housing affordability is far better than the third quarter national average of 127.1, which is a slight drop from 127.7 in the second quarter.

In Birmingham, the index registered 157 during the quarter, up nearly 2 percent from 154.2 in the second quarter.

Birmingham was one of three reported metropolitan areas in Alabama that saw an increase in affordability.  The two others included the areas of Anniston and Montgomery. 

Excerpts from Birmingham Business Journal – by Lauren B. Cooper

Posted by Christina Rickey at 03:05 | Permalink | 0 Comments

Wed, November 12th, 2008
READY FOR A REBOUND!

Every day you pick up the newspaper or hear the news about the depressed housing market around the country, the rise in foreclosures, and declining home values.  Well, congratulations to Birmingham!  Of the 25 national housing markets primed for a rebound, the November 2008 Wall Street Journal’s Smart Money Magazine has named Birmingham number 2.  What has contributed to Birmingham’s high ranking–the economic stability of UAB, the close proximity to the Mercedes and Honda plants, low labor and land costs, and our area attractions including the Birmingham Museum of Art and the Alabama Symphony Orchestra.  In fact, Birmingham has tied Dallas, Texas for the sixth highest price growth during the past year out of the group of 25.

 Unlike other parts of the country, Birmingham’s area builders did not overbuild.  There is, however, an abundance of speculative inventory to sell in many of the area’s most desirable communities.  Low new home finance rates and price incentives are available to help reduce new home inventories.  For example, Eddleman Properties is offering substantial discounts on select homes in Highland Lakes, Chelsea Park, and Regent Park at the Village, where some new home prices have been discounted as much as $19,500.  

 According to the Birmingham MLS, a rebound may have already started with new home sales increasing 9% from August to September.  As inventories are depleted, these attractive incentives will be gone.  So, now may be the best time to buy if you are dreaming of a new home!

Posted by Christina Rickey at 09:58 | Permalink | 0 Comments