The year 2012 revealed the best performance for home sales in the Birmingham metro area since 2008 with a 10% increase in sales over last year.
The trend continues this year with January home sales beating out January 2012 by a significant margin of 15%, another great indicator that the market in Birmingham is continuing the steady uphill growth observed this past year.
The performance of new home sales in the state received a promising boost in 2012 as Alabama new home sales were up 7.2% over 2011 according to data found by the Alabama Center for Real Estate (ACRE). Out of all the metro areas in the state of Alabama, 80% saw an increase in new home sales in 2012 compared to the sales in 2011.
Alabama new homebuilders continue to increase production to keep up with steadily rising demands of new homebuyers. The ACRE states that the new construction inventory is up by 7.3% in the state from last December.
Another promising sign of new home growth is the 19.3% increase in Alabama building permits from December 2011 to December 2012. Permits overall were up 8.4% in 2012 over 2011 which indicates the confidence builders have in the continued demand of new homes for sale in Alabama.
The entire metro area is seeing increased sales with the strongest markets being in the southern region including Hoover, Alabama homes. The state of Alabama saw a 6% increase in home sales in 2012 over 2011 and the Nation as a whole is predicted to see an 8% increase in home sales.
Out of the 25 local housing markets in the State 18 were reported to have year-over-year sales growths for 2012, which is great news for both consumers and the real estate community in Alabama as demand and value continue to rise. The home inventory for this past December has seen an 8% decrease from a year ago indicating an increase in demand.
After seeing a steady drop in home prices since 2006, when the average price of a home in the Birmingham real estate market was almost at the $200,000 mark, the market is now seeing a steady increase. The average price of a Birmingham home for sale in 2012 was up to $181,797.00. With metrics pointing toward steady growth, many experts are optimistic about the coming year.