November Home Sales Numbers:
GOOD NEWS: Total Birmingham area home sales increased by 46 percent in November 2009 compared to November 2008. Total November sales were 879 compared to 603 in November 2008.
This significant increase in total sales can be attributed to what was happening one year ago with the presidential election and the Wall Street crisis. Congress had just moved to bail out financial institutions. Home buyers became jittery by all the uncertainty and dropped out of the market in droves. As we consider economic conditions from a year ago it is encouraging that November home sales have increased.
MORE GOOD NEWS: The median price in the Birmingham area increased by 4 percent in November 2009 compared to November 2008. The November median price was $145,000 compared to $139,900 in November 2008.
Residential inventory continues to drop. Current levels are 26 percent lower than the highest ever recorded back in August 2007. Also note inventory is at lowest point since May 2006.
Foreclosure Sales:
The November report shows 220 foreclosure sales representing 25% of total sales. This is lowest percentage of foreclosures for a reporting period (month) this year. The October report shows 282 foreclosure sales representing 30% of total sales. The September report shows 263 foreclosure sales representing 28% of total sales. The August report shows 254 foreclosure sales representing 28% of total sales. July shows a total of 287 foreclosure sales representing 27% of the total. June report shows 315 foreclosure sales representing 29% of the total. The 278 foreclosures sold in May represent 29% of the total. 305 foreclosure sales in April represent 38% of the total. This compares to 40% of the total in March, 39% of the total in February and 45% of the total for January.
YEAR-TO-DATE STATISTICS
|
|
2008 |
2009 |
% Difference |
|
# of Sales |
11,656 |
9,803 |
This is a 16% decrease |
|
Average Sales Price |
$189,786 |
$171,735 |
This is a 9 % decrease |
|
Median Sales Price |
$154,600 |
$145,90 |
This is a 6% decrease |
The statistics in this report compare total residential sales 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.
The "American Recovery and Reinvestment Act of 2009," passed the House on February 13, 2009. The Senate also passed the bill later that day. The President is expected to sign the bill soon. The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Although the $15,000 tax credit for anyone purchasing a home was not included in the final bill this tax credit is positive for the real estate industry. Studies show that 2 additional real estate transactions occur for every First Time Home Buyer purchase.
FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
February 2009 FEATURE CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 REVISED CREDIT - EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 Amount of Credit Lesser of 10 percent of cost of home or $7500 Maximum credit amount increased to $8000 Eligible Property Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. No change All principal residences eligible. Refundable Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. No change Purchasers will continue to receive refund for unused amount when tax return is filed. Income Limit Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). No change Same income limits continue to apply. First-time Homebuyer Only Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase. No change Still available for first-time purchasers only. Three-year rule continues to apply. Revenue Bond Financing No credit allowed if home financed with state/local bond funding. Purchasers who utilize revenue bond financing can use credit. Repayment Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. No repayment for purchases on or after January 1, 2009 and before December 1, 2009 Recapture If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. Termination July 1, 2009 (But note program changes for 2009) December 1, 2009 Effective Date Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. All revisions are effective as of January 1, 2009
Major Modifications Italicized
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