Mid-Year Shelby Co. Homes Sales Update
New statistics for the Birmingham and Shelby Co. real estate market show a drop in sales and prices, but there are some positive signs showing, too.
According to the Birmingham Area Multiple Listing Service, Inc., sales in June, 2008 totaled 1,253; that’s 35% below the 1,929 sales recorded in June, 2007. For the first half of 2008, 6,702 sales were recorded. That’s 28% below the 9,317 total sales reported for the same period in 2007.
The average price of a home in June, 2008, stood at $196,504, which is about 5.4% below the June, 2007, average price of $208,767.
The numbers hold good news for sellers. June, 2008 inventory stood at 12,580, which is 714 fewer listings than the 13,294 homes for sale during June, 2007.
Here are some more numbers we consider encouraging. While the average price of homes for sale from January through June of 2008 ($194,000) did drop compared to the same period a year earlier, the drop is pretty slim: Only about 2%. In other real estate markets, the drops in average price have been quite a bit higher, so, once again, the swings in the Birmingham/Shelby Co. markets are not nearly as extreme.
What about foreclosures in our area? Those dropped by 17% during June, 2008, compared to a year earlier, according to the MLS. Out of a list of 100 major U.S. cities surveyed for foreclosure activity, Birmingham rated 97th.
Every business has up and down cycles, and real estate is certainly no different. While stories about ‘the dire real estate market’ continue to make the news, you might be wondering if you should forget trying to buy a home. We would suggest that just the opposite is true. Given very good interest rates that continue to be available and a large, diverse inventory to choose from, this is an excellent time to buy.