I committed to an occasional communication with you to keep you abreast of current market conditions. To those of you who are still waiting for buyers, and are asking me, “What are the market conditions, how long are homes sitting on the market, and when will I get a buyer?” all I can do is report to you on what is actually, factually, statistically happening in our area. To that end, the information below has been condensed from a quarterly brokers’ report that I receive from the Birmingham Association of Realtors® and I invite you to look at the information, particularly the stats at the end.
FIRST QUARTER 2008 HOME SALES REPORT
Excerpts from A Message from Hal Tillman, President of the Birmingham Association of Realtors®.
You’ve most likely heard the expression “when the going gets tough, the tough get going.” But do you know who first said it? It was Joseph P. Kennedy, the father of President John F. Kennedy. Since the day he uttered those words decades ago, they have come to represent a universal motivational statement, or even a call to action.
BAR leadership is working to assist you during the “tough going” we are all experiencing right now. And we’re “getting going” on new ways to help BAR membership continue to be successful in our industry.
Perhaps you’ve noticed the new addition of full page articles in recent editions in the Sunday Section of The Birmingham News. Interviews with REALTORS®, mortgage professionals, appraisers, and other BAR Affiliate Members have enlightened readers on today’s market. To further bring the real estate experience into full view for readers, interviews with “real life” buyers and sellers have also been included. This residential section …gives us an opportunity to share ideas and information with potential buyers and sellers.
The National Association of Realtors® is spending millions of dollars on a nationwide ad campaign. Maybe you’ve seen and heard some of these ads. The Birmingham Association of Realtors® has designed a local ad campaign for the Birmingham market that is airing now and in the upcoming weeks on Fox 6 and NBC13.
The first Brokers Meeting of 2008 is set for May 1st. Planned is a panel discussion among representatives from different areas from our industry including brokers, appraisers, loan agencies, and others. Our goal is to help the various areas of real estate understand how changing factors in their businesses affect change in real estate sales. By giving all these professionals a chance to connect, we can then share what is learned with residential sellers. Ultimately we hope sellers will begin to estimate the value of their homes based on the changing pre-qualifications and expectations of today’s potential buyers.
During this meeting we’ll also discuss the benefits of our ever-changing MLS technology, and how it can work for you to bring the buyer and seller together in today’s challenging market.
Now more than ever, when the going gets tough is when the public needs a REALTOR® to guide them through the buying or selling process – or both! We’re dedicated to our customers and to our industry. We’re a cut above the rest because we adhere to a strict Code of Ethics. In fact, this is the year that all REALTORS® must complete Mandatory Quadrennial REALTORS® Code of Ethics training.
- Hal Tillman, President
FIRST QUARTER 2008 HOME SALES REPORT (Continued)
Home sales are down compared to a year ago. Consumer confidence has waned. Buyers are sitting on the fence, taking a “wait and see” attitude. Sellers are frustrated that they don’t see more showings, much less more offers, and they are looking to their REALTOR® for answers.
How are you responding to this challenge? Are you moping; are you coping; or are you hard at work at finding ways to succeed in today’s real estate market?
BAR President Hal Tillman has outlined, above, the many ways the Birmingham Association is working to assist each member to stay connected with information, tools and resources available
to us through our Association.
In addition, the NATIONAL ASSOCIATION OF REALTORS® has produced a public relations campaign…to help REALTORS® change public perceptions about the vitality of the real estate market, and to reach out to those homebuyers who are on the fence. The campaign provides tools and resources to influence buyers who have been discouraged by pessimistic messages in the media, and it offers guidelines for reaching out to the local media, to friends,
neighbors and to community groups.
Here are some of the key themes in the campaign:
- Current conditions are ideal for buyers. Prices have moderated. Interest rates are approaching 40-year lows, remaining nearly 1.5% lower than they were in 2000.
- Mortgage loans are available. Contrary to perceptions, conventional mortgages are widely available for the majority of today’s homebuyers.
- Inventory is wide-ranging with many choices in prices and architectural styles.
- Home ownership is the best investment. Home ownership has been – and continues to be – one of the best investments. Nine out of ten consumers consider it to be a sound financial decision. Given the leverage in purchasing a home, the average return on a 5% down payment over 10 years is usually three to five times greater than stock market returns. Real estate has delivered the most consistent positive return over any other investment over the last 40 years.
- Current market conditions won’t last. Price declines will eventually come to an end. Research shows that prices are beginning to stabilize. We must be conservative however in our estimates about 2008. This is going to be an unusually difficult sales season. A modest increase in values is expected but not until in 2009.
The statistics below are a compilation of all areas and price ranges. Depending on where your home is located and the price range into which it falls, the statistics could vary greatly, but these will give you an overall idea of how our market is faring:
MARCH Statistics:
2008 Total Sales: 1162
2007 Total Sales: 1647
Difference of 485 sales or a 29% decline
2008 Average Price: $195,950
2007 Average Price: $193,800
Difference represents a 1% increase
2008 Median Price: $159,900
2007 Median Price: $158,000
Difference represents a 1% increase
2008 Average Days on Market: 104
2007 Average Days on Market: 111
RESIDENTIAL INVENTORY IN MLS:
YEAR/MONTH: TOTALS FOR SALE:
2008:
March 12,121
February 11,919
January 11,757
2007:
December 12,642
November 12,979
October 13,438
September 13,560
August 13,582* highest recorded
July 13,477
June 13,294
May 13,183
April 12,895
March 12,524
February 10,840
January 10,330
2006:
December 10,755
November 10,687
October 10,974
September 11,079
August 10,747
July 10,504
June 10,355
May 9,771
April 9,741
March 8,307
February 7,982
January 7,661
FIRST QUARTER Statistics:
2008 Total Sales: 3018
2007 Total Sales: 3971
Difference represents a 24% decline
2008 Average Price: $188,900
2007 Average Price: $195,183
First Quarter comparison shows a 3.2% decline in average price
2008 Median Price: $155,000
2007 Median Price: $156,700
First Quarter comparison shows a 1% decline in median price
2008 Average Days on Market: 109
2007 Average Days on Market: 110
REGIONAL STATS:
NORTH
2008 Total Sales: 235
2007 Total Sales: 239
Difference represents a 1.6% decline
SOUTH
2008 Total Sales: 1370
2007 Total Sales: 1938
Difference represents a 29% decline
EAST
2008 Total Sales: 839
2007 Total Sales: 1117
Difference represents a 25% decline
WEST
2008 Total Sales: 574
2007 Total Sales: 672
Difference represents a 15% decline
These statistics compare total residential sales for March 2008 vs. March 2007 as well as Year-to-Date statistics as compiled by the
Birmingham Area Multiple Listing Service, Inc. of the Birmingham Association of REALTORS®.
Neither the Birmingham Association of REALTORS® nor its MLS guarantees or is in any way responsible for its accuracy. Any market
data maintained by the Association or its MLS does not necessarily include information on listings not published at the request of
the seller, listings of brokers who are not members of the Association or MLS, unlisted properties, rental properties, etc.
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