Christina Rickey

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.

On Sunday, October 19, 2008, I had the privilege to participate in the annual Buddy Walk for PADS, Parent Advocates Down Syndrome of the National Down Syndrome Society. This annual event is to raise money for the Adult Down Syndrome Clinic at UAB. The clinic, only the second of its kind in the nation, offers comprehensive care and specialty care for adults with down syndrome. As mentioned in a previous blog, my beautiful granddaughter Emily was born with down syndrome. Although she will not be eligible to use the UAB clinic until she is 12, it is good to know that Birmingham and UAB are in the forefront with medical care and assistance for persons with down syndrome. The Parent Advocates Down Syndrome group embraces one vision--a world for individuals with down syndrome where limitless potential is accepted, expected, and embraced. PADS believe these special people can and will succeed in our communities. Congratulations to the Little Bits Team in honor of Emily who raised over $2,000 for this worthy cause.

Fall has arrived in Birmingham and the weather is perfect. Today was a beautiful, sunny day with temperatures in the low 80's and almost no humidity. I decided to enjoy the Bluff Park Annual Art Show in Hoover. This art show is always held on the first Saturday of October and promises to be one of the area's best outdoor events. I was not disappointed! Over 120 artists from all over the country gathered to exhibit their talents. There were photographers, painters, jewelry makers, woodworkers, and sculptures from as far away as Michigan and many from the southeast including Georgia, Tennessee, and Florida. Local artists also had great representation. The art show is presented by the Bluff Park Art Association which consists of volunteers who are interested in the arts and giving back to the community. The funds earned from this one-day event helps keep the arts alive in Hoover. Cash prizes ranging from $3,500 to $100 were awarded to over 35 recipients. Princeton Hoover Baptist Medical Center donated several awards. The $3,500 Princeton Hoover Purchase Award for the Bluff Park Art Association Permanent Collection went to Nevin Newton of Hoover for his intricate wood sculpture. The Permanent Collection consists of almost 100 pieces of two-and-three dimensional art. These comprise a rotating display in local schools, libraries and universities. Since I know Nevin personally, I want to say congratulations for a job well done!

I am one of those people who usually can remember my dreams. I wake up in the morning, and will share with my spouse what I dreamt. I will ask him, "What was that dream all about?" He has often responded, I should write my dreams down and someday write a book about them. I have no intention to do so, since I really don't want to know how the experts might interpret them.

So, here is my dream from last night. I was in a very cluttered home, and it appeared as though I was preparing for a party. My husband informed me he was leaving to pick up the food. I was to stay back and wash the large picture window looking out at the front street and pick up the clutter in the house. So, I sprayed cleaner all over the large glass and started to clean the window. Before picking up the clutter and completing the window task, I decided to stop and find my husband who was getting the food. I left the house and proceeded to walk through something that appeared to be a maze with no end in sight. In the meantime, I saw in my dream, guests starting to arrive at the party. I noticed the window was still not clean, my guests could not see out, the room was full of clutter, and there was no food. I suddenly woke up with no conclusion to my dream.

Now, I am not an expert, but giving thought to this dream, here may be why these thoughts are in my subconscious. Lately, I have been spending a lot of time listening to talk radio, television news shows, and reading real estate trade journals and websites. Like most of us, I'm concerned about the economy, the government bail-out programs and the upcoming presidential elections. Not knowing if this bail out is good for my real estate career and the future of the housing market, the window probably represents my unclear view of the future. As for the clutter in my house, this must represent the mountain of information I receive on a daily basis and not having a grasp on what is fact or fiction. As for the maze, I know I work diligently everyday following a path to help people sell or buy real estate, but recently this path has so many twists and turns along the way. Real estate is my profession. I have been at it for a long time and this is how I put food on the table and make a living. However, like my dream, getting to the party and obtaining the food has been a challenge, to say the least. I prospect daily for the next client, who may need my services but are on the fence afraid to do anything, even when they have to! I am finding clients with good credit and down payments having a challenging time obtaining financing. The market value of the homes in our area has not gone down as sharply as other parts of the country, but it is still a surprise to have an appraisal come in low just before closing; and everyone is scrambling to make the deal work. I know builders who have left the business because they cannot obtain a construction loan for their next spec home; and credit problems and unpaid bills have created problems with tarnished marketable title.

In conclusion, I know I am in real estate for the long haul. I plan to stick it out and continue through this maze of uncertainties. Everything in life is cyclical, and we always learn from our mistakes. In real estate there will be a party again. This time, hopefully, it will not be a wild brawl. This party will have food which will be well prepared. Houses will be purchased for shelter by people who can afford them, prices will not be inflated, and stability will become the norm. The window will be cleaned and the future will be clear for us, our children, and grandchildren. In order for this party to get started, we need to elect the right candidates who have the right motives with our intentions in mind, greed and selfishness need to be stopped, and all of us must return to the basics of living within our financial means.

Year-to-date and August 2008 HOME SALES

Birmingham Association of Realtors and its Multiple Listing Service

Year-to-date and August homes sales statistics of the Birmingham area residential real estate market continue to show signs of the sluggishness. Total sales are down, as are prices, yet there are some positive signs: MLS inventory continues to move in the right direction with 11,914 listings in August compared to 13,582 in August 2007. This represents 1,668 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 2.6% which is less than what is happening in other markets around the country.

Government action has been taken to inject new life into the sluggish real estate market, including passage of the Housing and Economic Recovery Act of 2008, the takeover of Freddie Mac and Fannie Mae, and the recent boost in loan limits.

Current conditions are ideal for buyers. Year-to-date average prices in MLS show a 2.6% decrease. These conditions won't last long. Now is a great time to make an offer on a home.

Mortgage loans are available. Contrary to perceptions, conventional mortgages are widely available.

Inventory is wide-ranging with many choices in prices and architectural styles.

We are listing and selling houses. Birmingham MLS members have sold over 9,000 homes since the first of the year. Don't compare this year with last year or the year before because 2006 and 2007 were record sales years for our MLS.

What happens when someone buys a home? NAR Chief Economist Lawrence Yun reminds us that each home sold contributes to the GNP. Here's a 2001 example...a typical first-time buyer spent $3,500 on furniture, carpet, painting, faucets and other items after purchasing a home. Trade-up buyers spent $5,000. Today these numbers would add up to much more. Income is generated when someone buys a home. An inspection is ordered along with a survey and title search. The home is appraised. The loan is closed. Moving trucks are on the scene. Everyone gets paid. Everyone spends some money. They may go to dinner at the local eatery. The restaurant makes money. The owner buys a new plasma screen TV. The electronics store manager makes money. He takes his family on a long-planned vacation. The resort he chooses makes money and hires an additional worker. This positive economic cycle takes place with the sale of each home.

AUGUST REPORT

August 2008 Total Sales: 1,146

August 2007 Total Sales: 1,690

This represents a 32% decrease in total sales for this month

August 2008 Average Price: $189,587

August 2007 Average Price: $193,646

This represents a 2% decrease in average price for this month

August 2008 Median Price: $150,300

August 2007 Median Price: $159,900

This represents a 6% decrease in median price for this month

August 2008 Days on Market: 94* adjusted to exclude new home sales

August 2007 Days on Market: 96* adjusted to exclude new home sales

August 2008 Inventory: 11,914

August 2007 Inventory: 13,582

This represents 1,668 fewer listings in the MLS for this month

YEAR-TO-DATE REPORT (January through August)

2008 Total Sales: 9,055

2007 Total Sales: 12,659

This represents a 28% decrease in total sales (same decrease for the past 3 months)

2008 Average Price: $194,598

2007 Average Price: $199,713

This represents a 2.6% decrease in average price

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

2008 Median Price: $159,100

2007 Median Price: $161,100

This represents a 1% decrease in median price

2008 Days on Market: 100* adjusted to exclude new home sales

2007 Days on Market: 93* adjusted to exclude new home sales

YEAR-TO-DATE REGIONAL BIRMINGHAM METRO REPORT:

2008 NORTH Total Sales: 637

2007 NORTH Total Sales: 789

This represents a 19% decrease

2008 SOUTH Total Sales: 4,295

2007 SOUTH Total Sales: 6,225

This represents a 31% decrease

2008 EAST Total Sales: 2,466

2007 EAST Total Sales: 3,459

This represents a 29% decrease

2008 WEST Total Sales: 1,657

2007 WEST Total Sales: 2,186

This represents a 24% decrease

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