September 2008 Birmingham Market Report

Year-to-date and September 2008

BIRMINGHAM HOME SALES REPORT

Generated By

Birmingham Association of Realtors and its Multiple Listing Service

Year-to-date and September 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 11,578 listings in September compared to 13,560 in September 2007. This represents 1,982 fewer listings in MLS now compared to one year ago. The Year-to-date report shows the average price of Birmingham area homes has dropped 3% which is less than other markets around the country. Here is more news:

Total residential sales for September 2008 are 8% behind September a year ago. This may be significant because 8% is the smallest decrease in monthly sales we've seen all year. Each month for the first eight months of 2008 the decrease has been 27% on the average.

September 2008 total sales outnumbered August 2008 total sales. This normally doesn't happen. September sales have always been fewer than August sales dating back to 1992. Traditionally this has much to do with end of the summer home buying season and the beginning of school.

September 2008 totals, however, are 1,172 compared to 1,146 for August or a 2% increase. What does this mean? It's too early to say, but around the nation, the National Association of Realtors experts say increases in closings are expected. NAR says that there is a new momentum in the national housing market as buyers begin to take advantage of lower prices and affordable interest rates. As a counter-balance to this news, most economic reports are cautionary in light of recent events (Fannie Mae, Freddie Mac debacle, the government bail-out of Wall Street, bank failures, etc.). It's anybody's guess as to when buyers will get back into the market. Much still remains to be seen as to when this housing market bottoms out and the rebound starts-up.

SEPTEMBER REPORT

September 2008 Total Sales: 1,172

September 2007 Total Sales: 1,283

This represents an 8% decrease in total sales for this month.

This is significant due to the percentage of the drop each month for the first 8 months this year. The average decrease has been 27% each time.

The fact that total sales in September 2008 are only 8% behind September 2007 is significant.

Here is a quick look at September sales in recent years:

Sept 2008: 1,172

Sept 2007: 1,283

Sept 2006: 1,523

Sept 2005: 1,574

September 2008 Average Price: $182,955

September 2007 Average Price: $204,112

This represents a 10% decrease in average price for this month which is a significant drop.

The year-to-date average price is 3% behind last year at this time.

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

Sept 2008: $182,955

Sept 2007: $204,112

Sept 2006: $192,312

Sept 2005: 197,370

September 2008 Days on Market: 98* adjusted to exclude new home sales

September 2007 Days on Market: 101* adjusted to exclude new home sales

September 2008 Inventory: 11,578

September 2007 Inventory: 13,560

This represents 1,982 fewer listings in the MLS for this month

YEAR-TO-DATE REPORT (January through September)

2008 Total Sales: 10,227

2007 Total Sales: 13,937

This represents a 27% decrease in total sales

2008 Average Price: $193,305

2007 Average Price: $200,202

This represents a 3% decrease in average price

Still some good news...prices have not dropped lower than this point all year

2008 Median Price: $158,700

2007 Median Price: $161,400

This represents a 1.7% decrease in median price

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

2007 Days on Market: 94* adjusted to exclude new sales

YEAR-TO-DATE REGIONAL REPORT:

2008 SOUTH METRO AREA Total Sales: 4,792

2007 SOUTH METRO AREA Total Sales: 6,865

This represents a 30% decrease

These statistics compare total residential sales for September 2008 vs. September 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.