Market Trends Birmingham, Alabama

VULCAN The Iron Man is standing tall and proud as he overlooks Birmingham in it's strong come back in the real estate market!

Money Magazine placed Birmingham #3 in their TOP 10 local real estate markets to recover: This publication predicts good news for our market. The April issue of Money Magazine says Birmingham will be one of the Nation’s first markets to rally, showing increases in median sales prices this year. The report says the Birmingham area will experience a 2% rise in values by the end of 2009. This compares favorably with other markets such as Atlanta, St. Louis, San Antonio, Charlotte and Knoxville which won’t see increases until the first half of 2010. Much of the rest of the nation, according to Money Magazine, won’t see improvements until the end of 2010 or later. Prices nationally aren’t expected to get back to 2006 levels for a while. Money Magazine reports that it may take another decade before that happens; another indication that affordability will be with us for awhile. Again this is good news for consumers.

March 2009 home sales increased over February 2009 by 129 more units. This is an 18% increase in closings. When comparing March 2009 sales with March 2008, sales were down by 308 units, representing a 27% decrease. The average price in March 2009 was 18% behind the average in March one year ago. The median price in March 2009 was down 14% from March 2008.

Foreclosure sales remain a significant factor in the local market. The 336 foreclosure sales in March represent 40% of the total. This compares to 39% of the total in February and 45% of the total for January. The average foreclosure price in March was $66,959. In February the average foreclosure price was $78,044. In January the average foreclosure price was $75,697.

Inventory stands at 10,649 listings which compares favorably to August 2007 when inventory reached an all time high of 13,582 listings. Still too much inventory exists in a market with too few buyers. The Real Deal promotion is expected to create traffic for our entire market.

With this great news and the many wonderful factors available in the market today such as:

Mortgage rates have dropped to record lows. Current rates nationally are at their lowest since the 1950’s.

Home affordability is up. The weak housing market has improved affordability. NAR President Charles McMillan says housing affordability is at a record high. With the drop in interest rates, a median-income family can afford a home costing $20,000 more than a year ago for the same monthly mortgage payment.

The housing stimulus is a factor: First time buyers can take advantage of the $8,000 tax credit they can receive for buying a home if they act now. This is a wonderful opportunity to get this money back when you buy a home in 2009!

NOW is a Great Time to Buy a Home in the
Birmingham, Alabama Metro Area!

"So what are you waiting for? Give me a call today! And when we get through shopping and have all the details taken care of we can can head on over to VULCAN and check out THE IRON MAN where you can enjoy some of the most beautiful views of this great city!

The statistics in this report compare total residential sales for March 2009 vs. March 2008 as compiled by the Birmingham Area Multiple Listing Service, Inc. of the Birmingham Association ofREALTORS®