September Birmingham Area New Home Sales Jump 9%

It’s nice to read some good news isn’t it? According to an article, Local New Home Sales Jump 9 Percent, September saw an increase in new home sales.

Now, existing home sales did experience a drop in the Birmingham area, but this is something we expected as the economy shows a shaky side and mortgage restrictions tighten.

The article also noted that the inventory of new homes on the market dropped as well to an 8 month inventory (from 9.1 months in August), and existing homes had an 11.3 month inventory.

Seeing inventory drop is something we see as positive (home builders might not) due to the fact when the inventory drops, the days on market adjusts naturally, and prices stabilize because home sellers don’t become so desperate and see their budgets tighten with some of them facing two house payments.