Friday, December 19, 2008
To Monday, December 19, 2011
Broker Report:
Year-To-Date and November 2008 HOME SALES
Year-to-date and November 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 10,994 listings in November compared to 12,979 in November 2007. This represents 1,985 fewer listings in MLS now compared to one year ago or a 15 percent drop. The Year-to-date report shows the average price of BIrmingham area homes has dropped 4.5% which is less than other markets around the country.
When will the home sales market rebound? No one knows. Rob Couch, former General Counsel for HUD for the Bush Administration, was guest speaker at the BAR Broker Meeting held November 24th. He indicated that there are many variables affecting the economy. In addition, reporting of negative economic news continues to shake consumer confidence. As a result, buyers are sitting on the fence, waiting to see what happens. Some are concerned for their job stability, or they believe they will be unable to sell their existing house quickly, so they are waiting to buy. "The most important thing we can do is tell our U.S. Senators and Congressman what we see happening to the local housing market."
SmartMoney Magazine ((Nov 2008 issue) lists Birmingham as the number 2 market in the nation in a survey of the top 25 cities "ready to rebound."
Seller, worried about getting less than the asking price for their existing homes, may be able to make up the difference with the current lower mortgage rates and a more affordable price on their next buy.
The Birmingham area market offers a wide variety of homes for sale in prices and in architectural styles.
Foreclosures are not as difficult a factor in the Birmingham area market as in other areas of the country.
As the current buyers market gives way to a more balanced market, demand for homes will increase.
When buyers get back, competition for available homes will increase and prices will be affected.
Real estate remains the best investment as person can make and we believe that housing will lead the way to a national economic recovery.
