October homes sales were up a healthy 19% from October 2011, and according to real estate expert, Tom Brander, the total 12-month moving average line for dollar sales continues to be pointed upward. October also showed a 15% decrease in housing inventory levels compared to last year, putting total inventories in October below the 10,000 mark, which is an encouraging sign, says Brander.
Another good sign for the Birmingham area housing market, Brander reports, is that for the first time in awhile, home sales are exceeding housing permits. Housing permits in Jefferson County fell to 67 in September from 90 in August.
The absorption rate for both new and existing homes for sale remained fairly steady for the month of October. Birmingham new homes for sale are at 6 months supply, which is down from October of last year which came in at 8 months supply. Average Days on Market for new Birmingham area houses registered 181 compared to September’s 173 DOM.
Brander relayed that the 12 month moving average line for new home prices has been heading up quite nicely since January of 2012, and both new and existing average home prices are improving. With mortgage rates again at record lows, there is great incentive for potential home buyers to purchase a new home in new golf resort communities, like Ross Bridge, while housing market conditions in Birmingham remain favorable.