Birmingham has been the center of positive attention lately and rightly so. In May the Birmingham metro area rose 20.4% in residential sales reaching a total of 1,255 units sold. Year-to-date residential sales rose 11%.
Right now is certainly a great time to buy a new home in Birmingham, Alabama as inventory in May increased by 1.8% from the month prior. This is consistent with historical data where May inventory traditionally increases by at least .8% every April to May, due to the spring/early summer home buying season.
The balance between supply and demand in Birmingham is at 6.3 months right now, which represents significant improvement from only two years ago when the supply was 11.7 months. This inventory-to-sales ratio is expressed such that it would take only 6.3 months for the market to absorb the current inventory level.
As detailed by the Alabama Center for Real Estate (ACRE), the median selling price for the Birmingham metro area was $172,900—a 10.8% increase from last May 2012 when the median selling price was $156,000. The median price for May is also up 6.8% from the month prior.
Source: Alabama Center for Real Estate