Sales: According to the Greater Alabama MLS, June home sales in the Birmingham area increased 13.7% year-over-year (Y/Y) from 1,741 to 1,980 closed transactions, marking 13 consecutive months of Y/Y gains. Following seasonal trends, sales increased 14.8% from May. Sales are now up 22.9% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all Birmingham-area housing data, click here.
Inventory: June listings (3,110) increased 2.8% from May but declined 34.3% from one year ago. Months of supply (inventory to sales ratio) also decreased from 2.7 months to 1.6, reflecting a market where sellers generally have elevated bargaining power.
Pricing: The median sales price in June was $275,000, an increase of 12.2% from one year ago and an increase of 1.9% from May. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Homes sold in June averaged 11 days on the market, a record low and 19 days fewer than in June 2020.
Forecast: June sales were six units, or 0.3%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 1,986 sales for the month, while actual sales were 1,980 units. ACRE forecast a total of 9,882 sales year-to-date, while there were 9,607 actual sales through June, a difference of 2.8%.
New construction: The 197 new homes sold represent 11.4% of all residential sales in the Birmingham area in June. Total sales increased 5.3% year-over-year. The median sales price in June was $322,500, an increase of 7.1% from May and an increase of 8.2% from one year ago.
NAR commentary: According to the National Association of Realtors (NAR), existing home sales nationwide increased in June, rising 1.4% from May (seasonally adjusted annual rate). The gain ends four consecutive months of declining sales. June sales were up 22.9% from one year ago. The median sales price for existing homes hit another historic high ($363,300), rising 23.4% year-over-year and marking 112 consecutive months of year-over-year gains. Rising home prices are largely a result of low housing inventory amid significantly elevated demand. Supply did improve somewhat, rising 3.3% from May, but is still down 18.8% from June 2020. Months of supply (2.6 months) increased modestly from May but is still well below June 2020 (3.9 months).
Lawrence Yun, chief economist for NAR, said, “Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales. Home sales continue to run at a pace above the rate seen before the pandemic.”
Yun added that home prices are unlikely to decline, saying, “At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to…