Birmingham-area home sales up 28% year-over-year in December

Sales: According to the Greater Alabama MLS, December home sales in the Birmingham area increased 28.2% year-over-year from 1,229 to 1,575 closed transactions. Sales increased 7.5% from November, and total sales in the area were up 6.6% in 2020. Two more resources to review: Quarterly Report and Annual Report.

For all Birmingham-area housing data, click here.

Inventory: Homes listed for sale decreased 17.3% year-over-year from 4,411 listings one year ago to 3,647 in December. Months of supply (inventory to sales ratio) decreased from 3.6 months to 2.3, reflecting a market where sellers generally have elevated bargaining power.

Pricing: The median sales price in December was $240,000, an increase of 6.8% from one year ago and a decrease of 0.6% from November. 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 December averaged 23 days on the market (DOM), selling 15 days faster than in December 2019.

Forecast: December sales were 332 units, or 26.7%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,243 sales for the month, while actual sales were 1,575 units. ACRE forecast a total of 16,590 residential sales in 2020, while there were 17,683 actual sales through December, a difference of 6.6%.

New construction: The 271 new homes sold represent 17.2% of all residential sales in the Birmingham area in December. Total sales increased 23.7% year-over-year. The median sales price in December was $310,905, an increase of 1.9% from November and an increase of 6.7% from one year ago.

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 Dec. 1-31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.

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