Another One Bites the Dust
With 2011 now in the history books, it’s time to reflect and plan for the future. 2011 marked @Homes Realty’s 2nd year of business as an independent brokerage and it was a year of growth!
Our Alabama brokerage business grew in several dimensions during the year with increases in; sales volume, agent head count, and an expanding web-presence into new markets. We were very pleased to be able to support and assist our associated agents grow their businesses by 30% on average during 2011.
Growth in a Down-Flat Housing Market
Over the last 5 years the Birmingham Real Estatemarket has declined:
- On a volume basis sales are down ~35%
- Contiguous DaysOnMarket (avg time to sell a home) has increased ~48%
- List price / sold price ratios have widened to ~10%
- Median home prices have flattened at ~$145k
Thus we are not ignorant that the problems we have, are the problems to have; gaining market share in a down-flat market. Nevertheless this has also brought increased competition among local brokerages and we know that our continued success also rests in the hands of consumers. We are so grateful to all of our customers and clients for choosing @Homes Realty, we know you have a choice and are honored to serve.
Birmingham Housing Market – Year Over Year
Year-end is the perfect time to compare market statistics year-over-year and what I can say about the Birmingham Real Estate market is very simple really; Flat, Flat, Flat.
- Home sale transactions flat up 0.4%
- Annual dollar volume up 1.6%
- Median home price down -0.8%
- Current inventory up 0.6%
- Absorption rate flat 8-month supply
- Days-On-Market increases 7.5%
- List-To-Sale Price flat at ~95%
A Word About Monthly Market Updates
Our industry is a seasonal one; home sales and prices go up through the summer months and go down through the holidays and winter season. This is the nature of the beast, it happens every year, year in and year out.
Our industry is also notorious for minimizing the seasonal effect on the upside and maximizing it on the downside in our marketing efforts. You simply won’t find this behavior on these pages. The chart to the left illustrates these seasonal swings very well.
Home Sales Growth and Rising Prices
For a consumer in the market (buyer or seller) and for real estate professionals alike, there is nothing better than growing home sales and rising prices and we wish we could tell you that this was the current state of our market, but it is not!
Nevertheless once our country views the current financial crisis (some have termed the Great Recession) in the rear view mirror and excesses of the housing bubble have been worked off, real property will track inflation levels and rise again.
Our industry has changed forever, its no longer just about Location, Location, Location. In the new environment it’s also about accurate and actionable Information, Information, Information. Welcome to a brave new world!