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2007 HOME SALES REPORT
The following information was provided by Dave Mace, at the Birmingham Association of REALTORS® and the National Association of REALTORS®
This report compares 2007 home sales with 2006 home sales
December 2007 home sales were down 19% compared to December 2006. For the past 5 months we have seen a drop in closings compared to one year ago. One factor has to be a drop in consumer confidence for the present. With the sub prime mortgage situation making headlines, and with lenders tightening their standards, many potential customers pulled back, taking a "wait and see" attitude. Locally, we’ve been hearing the same question again and again from our neighbors and friends…”how are you coping with the bad real estate market?” It has become a “matter of fact” that the real estate market is “bad”.
However, it's important to keep things in perspective. For 7 consecutive years (prior to 2007) the Birmingham Area MLS has seen sales and prices increase each year. 2007 was the 2nd best year ever for total residential sales and 4th best for single family home sales. To gain a better perspective of where we are is to look at where we’ve been. With 7 consecutive years of growth…it is evident that we have a great local real estate market. Our economy continues to benefit from new industry choosing to locate in central Alabama. And, the city of Birmingham rates high among America’s major cities for low unemployment. All of this helps keep things in perspective.
Don’t be discouraged about the market slowdown. No industry can sustain record years of growth indefinitely. Adjustments in the real estate market will happen and are cyclical and are normal.
Note that when the market changes from a sellers market to a buyers market there are more choices in every price range…and homeownership remains affordable. This is one of the primary goals of the National Association of REALTORS®…to promote homeownership. Remember that buyers buy and sellers sell in any kind of economic climate…so be ready when those shy buyers out there are coaxed back into the market.
The following statistics compare total year-to-date residential sales in 2007 with 2006 as compiled by the Birmingham Area Multiple Listing Service, Inc. of the Birmingham Association of REALTORS®. This report includes ALL residential except where noted.
TOTAL SOLD
2007: 17,476
2006: 18,768
Total residential sales were 7% behind last year.
AVERAGE PRICE
2007: $198,240
2006: $198,340
Average prices of homes sold through MLS remain “even” with last year.
MEDIAN PRICE
2007: $160,800
2006: $161,700
Median prices of homes sold through MLS are off less than a percent.
DAYS ON MARKET:
2007: 110
2006: 95
SINGLE FAMILY ONLY SALES
2007: 15,919
2006: 17,492
Single-family sales were 9% behind last year.
RESIDENTIAL INVENTORY IN MLS:
2007: PROPERTIES IN MLS FOR SALE:
MONTH
December 12,642* lowest since April 2007
November 12,979
October 13,438
September 13,560
August 13,582* highest recorded
July 13,477
June 13,294
May 13,183
April 12,895
March 12,524
February 10,840
January 10,330
2006: PROPERTIES IN MLS FOR SALE:
MONTH
December 10,755
November 10,687
October 10,974
September 11,079
August 10,747
July 10,504
June 10,355
May 9,771
April 9,741
March 8,307
February 7,982
January 7,661
FACTS FOR BIRMINGHAM AREA BUYERS & SELLERS...
- The Birmingham real estate market traditionally is a steady market with few highs or lows.
- Total home sales grew annually for the past seven consecutive years until 2007.
- No industry can sustain growth year after year after year...there has to be an adjustment at some point.
- What we are experiencing is a buyers market, which will continue into this year.
- Sellers are adjusting their asking prices for their properties.
- This means home ownership remains affordable...translation...this is an excellent time to buy.
- The backed-up inventory in MLS is finally moving.
- August 2007 was the peak for backed-up inventory.
- Current inventory is the lowest since this April.
- Consumers have reason to be confident in purchasing now...
- Birmingham is at the top of the list of the nation's largest cities for record low unemployment.
- Mortgage interest rates continue at 40-year lows.
- We have a diverse home sales market with many choices in all price ranges.
- Birmingham's total residential sales in 2007 were the 2nd best ever recorded.
- Birmingham's total single family home sales in 2007 were the 4th best ever recorded.
- The National Association of REALTORS® predicts 2007 median prices to be $217,600, Birmingham median prices are $160,800.
- The National Association of REALTORS® predicts 2007 home prices to decline 1.9%. Birmingham average prices have not declined but remain "even" with last year.
- All real estate is "local"...some markets are "hot" and others are "not".
- Some of us have never seen a changing real estate market. Business cycles are expected and are normal.
Here are some other Quick Facts about Real Estate you'd like to know (source: NAR)
- Over the past 30 years, home values have risen (nationally) more than 6% annually.
- On average, the value of a home nearly doubles every 10 years (nationally).
- 60% of the average homeowner's wealth comes from their home's equity.
- The average homeowner's net worth is $171,000.that's nearly 46 times that of a renter's, who has an average net worth of $4,800.
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.
2007 Home Sales Report to Brokers
