The Seasonal Slowdown
A seasonal slowdown in the Birmingham Real Estate Market is an expected and normal occurrence and this year will be no different. However the good-news is the improvement we see in the current seasonal slowdown compared with 2010 results, and thus far its looking good, at least worthy of a closer look.
As Octobers go, this past October was a great month, with 680 closings in the Birmingham Metro-Area (Jefferson & Shelby Counties)! Birmingham Home Sales were up 35% when compared to Oct 2010 and nearly on-par with 2008 comparables. Moreover this follows a September where our local housing market out-performed the previous year as well, and this is a recent yet welcomed trend. You will notice this favorable trend line in the following chart of local home sales for the last 5 years.
Birmingham Home Sales 2007 – 2011
Yet 2 Months Does Not A Long-term Trend Make
Despite the recent pleasent news we have experienced in home sales, the over-all market picture is an eye opener, to say the least. The chart to the left shows annual home sales in the Birmingham Metro Area for the last 7 years.
Our local market peaked pre-mortgage-crisis in 2005-2006, and since that time the overall housing market has shank a remarkable -40%. To put it in simplier terms the Birmingham Housing Market is now 40% SMALLER than it was only a few short years ago.
Yet given the last 2 years in may be safe to say that our local market has reached a plateau or bottom post-mortgage-crisis and is showing strong signs of stabilization, although the market is a smaller one, with dues paid. Will we return to the days and levels of 2006? Only time will tell, and its likely not in the next few years.
Regardless, you can monitor our monthly reports here by Subscribing to our Market Feed and I assure you we will be keeping you updated, for sure!