Birmingham Real Estate Sales and Inventory Levels

Birmingham real estate sales and inventory levels for December, 2009 appear encouraging after November's spike, which was widely publicized in the local media. I should note this post is based on preliminary figures which will likely be finalized in a few days. Two key measures of the market's strength are real estate sales and inventory levels. Take a look at the chart below to see historical figures (conventional single family only):

Though not shown on the chart, November, 2009 yielded an increase in homes sold from November, 2008 which was surprisingly good news. The increase was sizable (about 35%) but there were concerns that the expiration of the federal tax credit (which has now been extended and expanded) may have caused a spike as first time homebuyers rushed to beat the deadline. For December, 2009, sales increased nominally in dollar terms with average list and sales prices having increased as well!

As shown on the chart, inventory levels continue to be problematic at the end of the year as the number of homes for sale climbed in comparison to November as well as 2008 levels. Real estate sales and inventory levels measured together, which represents the relative balance of supply and demand, also continue to be somewhat problematic but improving. For December, 2009, months inventory climbed to 12.89 (preliminary figures) from 10.76 in November and 11.41 in December, 2008. If you look closer at the numbers in the right column though you'll see an encouraging trend (for sellers) for real estate sales and inventory levels. The 90 day moving average of months inventory for the last two months are below the levels of 2008 which could mean support for home values.

So what does all of this mean? For sellers, it means to make sure to price your home right and make sure it is in "move-in" condition and staged properly. If you aren't getting showings, you are probably priced too high. For sellers of larger, higher priced homes, demand appears to be increasing! For buyers, it means there are still lots of choices out there and you are in a great position to negotiate a great deal. Real estate sales and inventory levels are stabilizing and it is still a great time to buy and a better market to sell than in the past 12-18 months. To search for homes in the metro birmingham area, including Hoover, go to markcrain.com and set up your owner personalized criteria and even have listings emailed directly to your inbox as they come on the market (a free service).