Birmingham-area home sales decline 14.7% year-over-year in October

Sales: According to the Greater Alabama MLS, October home sales in the Birmingham area decreased 14.7% year-over-year from 1,669 to 1,424 closed transactions. Following seasonal trends, sales decreased 8.6% from September. Sales are up 9.9% year-to-date. Two more resources to review: Quarterly Report and Annual Report.

For all Birmingham-area housing data, click here.

Inventory: October listings (2,798) decreased 5.5% from September and 35% from one year ago. At the current sales pace, all the active inventory on the market would sell in 2 months, up from 1.9 months in September and down from 2.6 months in October 2020. The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply.

Pricing: The median sales price in October was $270,000, an increase of 10.2% from one year ago and unchanged from September. 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 October averaged 12 days on the market, selling 16 days faster than in October 2020.

Forecast: October sales were 228 units, or 13.8%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,652 sales for the month, while actual sales were 1,424 units. ACRE forecast a total of 17,123 sales year-to-date, while there were 16,096 actual sales through October, a difference of 6%.

New construction: The 206 new homes sold represent 14.5% of all residential sales in the Birmingham area in October. Total sales increased 17.1% year-over-year. The median sales price in October was $311,603, an increase of 0.3% from September and an increase of 2.4% from one year ago.

Click here to view the entire monthly report.

The Birmingham Metro 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 Oct. 1-31. Thus, the performance represented is historical and should not be used as an indicator of future results.

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