Birmingham Real Estate Is Heating Up
Birmingham real estate took a big hit during the market collapse and recession. But since then, the market has rebounded nicely – including the latest data from the most recent spring market season.
A look at the monthly Birmingham MLS data for May 2015 reveals several revealing insights and trends. For starters, we saw a rise in the number of properties sold in May by three percent from April. This number was also four percent higher than it was in May 2014.
Of these units sold, new home sales decreased very slightly, while existing home sales went up by four percent from April and from last year. This suggests room for improvement for new home construction in the near term.
Inventory Declines Monthly But Up Overall
Thanks to increased selling activity, inventory for the Birmingham real estate market declined by one percent overall from April to May (although it did rise one percent from last year to this year). There were 10,338 units available in active inventory in May, compared to 10,420 units in April.
There were also fewer applications for new home construction permits.
The absorption rate for existing homes remained steady at eight months, which is what it was last year. This varies significantly by area, though; some parts of the greater Birmingham real estate market have lower levels of inventory, such as Homewood, while others have greater supply. Check with your Birmingham real estate agent for more precise data.
Prices Continue to Rise
The trend most homeowners – and buyers – want to keep track of is home price.
According to the data, home prices in the area continue to rise. The average price for existing homes rose to $200,570, up from $190,984 in April – a gain of five percent. This is consistent with what we’ve seen over the past 18 months. While there have been some month-to-month decreases, overall the trend has been toward higher prices overall.
This is also consistent with statewide trends, as reported by ACRE. Overall, across Alabama, prices went up by 8.4 percent from a year ago and seven percent from April.
Find Birmingham Real Estate Today
We project that Birmingham real estate will continue to appreciate in value through 2015. The trends we’re seeing have been established for some months now, and are likely to continue.
Talk to your Birmingham real estate agent at ARC Realty to learn more about how you can take advantage of current trends by buying your dream home or selling your property for full value.
