If you’ve been thinking about buying a home in the Birmingham or Shelby county area, be aware: the clock is ticking…

The government’s Tax Credit for first time (and many existing) Buyers ends April 30th.

Under current rules, that’s the last day you can have a Contract to buy a home in place and still be eligible for the credit.

Have you been ‘on the fence’ about buying?

Here are some of the reasons proving why buying now is such a good idea:

After taking a look at new numbers from the Birmingham MLS, it’s clear that Buyers have the upper hand when it comes to purchasing a home in the area.

Almost all across the board in the areas we checked, sales in January were down, and in some cases, half of what they were four months ago:

The message for now is clear: Buyers call the shots.

If you’re looking to buy, all sorts of factors are on your side at the moment. First, there are lots of homes available (482 in Helena and Pelham, 350 in Alabaster and 684 across the North Shelby Co. area at the moment!). Second, smart Sellers know they have competition and will do whatever they can to ‘work a deal.’

Third, interest rates are, in two words, still great. One of the Lenders we work with reports 30-year fixed rates remain below five percent, while 15-year rates (which were around 4.375% last week) have dropped a bit more.

So, if you’re a Seller, the message here is that you absolutely must meet Buyer’s expectations in terms of how nicely your home shows, and price. Fail to meet either of those requirements, and your home won’t sell.

And if you’re a Buyer, with such a good market for buying a home, one question comes to mind:

What are you waiting for?

David

Here are a few news tidbits involving home sales:

…Sales in the Birmingham area shot up 46% in November, marking the second straight month of increases over the previous year, according to the Birmingham Association of Realtors. In November, 879 homes sold, compared to 603 in November, 2008;

…November sales of previously occupied homes surged to their highest point nationwide in nearly three years, according to the National Association of Realtors;

…Lawrence Yun, NAR’s Chief economist, sees continued progress in 2010, even as some of the government’s efforts to stimulate the housing market ease. “We expect a temporary sales drop [before] another surge in the spring when buyers take advantage of the expanded tax credit,” Yun said. That “hopefully will take us into a self-sustaining market in the second half of 2010.”

…Roughly 2 million homebuyers have taken advantage of the $8,000 First Time Buyer’s Tax Credit, according to NAR estimates;

…Sales of new homes, however, dropped 11% in November, their lowest level since April (new home sales represent a dwindling share of the market). Bottom line: If you’re looking for a new home, chances are you’ll find builders extremely anxious to work a deal;

Overall, analysts feel the housing market continues to recover from its recent downturn, with the government’s assistance programs getting much of the credit.

If you’re thinking of buying a home in the Birmingham and Shelby Co. area, the market remains very much in your favor, thanks to a large selection of homes to choose from, motivated Sellers, and a continuation of some of the lowest ever interest rates on loans.

Last, but certainly not least, keep in mind that the First Time Buyer’s Tax Credit, originally set to expire November 30, 2009, has been extended to April 30, 2010. The government has also expanded the program to provide incentives for current homeowners who relocate — click here for details.

David

Getting your home sold in Shelby County is taking longer in some communities and less time in others, while prices have dropped, according to October statistics from the Birmingham Multiple Listing System.

The average number of days on market increased in Alabaster and Chelsea, but fell in Helena, Pelham and Calera:

Click here to see a larger version of the Average Days On Market graphic…

Prices continued a downward trend in October, and substantially so, compared to September:

Click here to see a larger version of the Average Sales Price graphic…

How many homes are selling?

Except for Calera, the number of homes sold in October dropped from September. Chelsea saw the sharpest one month drop, while more homes sold in Calera during October than in September:

Click here to see a larger version of the Number of Homes Sold graphic…

Why the uptick in Calera?

Perhaps it’s the large inventory of low cost housing (both new and resale), making for some very attractive deals for first time home buyers, along with the fact that Calera qualifies for USDA financing (which means loans with no down payment required).

I think these statistics are giving us some important messages.

If you’re planning on buying a home, the market is continuing to work very much in your favor in the Birmingham and Shelby County area. Prices have dropped, inventory is in plentiful supply, and loans continue to be very affordable.

If you’re trying to sell, the message these numbers present is that it’s going to take a lot more than just putting a For Sale sign in the yard.

Marketing plays a more critical role than ever, and must be done in innovative ways if your home is to stand out among all the other properties for sale.

Pricing is no less important and will be a huge deciding factor in how quickly you sell, or if you sell, at all (believe me, we have seen examples of both!).

You may also benefit from an informed assessment of your property’s appearance and condition. With so many homes for sale right now, if your property doesn’t sparkle, Buyers will simply move on to another.

These are some very good reasons for trusting the sale of your home to an Agent who’s knowledgeable about the market here in the Shelby Co./Birmingham area and who knows how to achieve success in spite of challenging economic conditions.

David

Here’s a look at current inventory for the Shelby County and Birmingham areas, as indicated by the Birmingham Multiple Listing Service. To help you with an idea of trends, the numbers in parentheses show the count as of March 9th, 2009 (one month ago today):

Single family, town homes and condominiums available:

Helena & Pelham area (Shelby Co.): 519 (521)
Helena & Pelham area (Jefferson Co.): 59 (58)
North Shelby/Hoover area (Shelby Co.): 739 (701)
Chelsea: 298 (324)
Altadena/Cahaba Heights area: 67 (62)
Liberty Park/Vestavia area: 492 (446)
Alabaster, Maylene & Saginaw area: 373 (372)
Calera, Montevallo & Wilton area: 360 (356)
Columbiana, Westover & Wilsonville area: 93 (89)

Number of homes for sale based on current selling price:

Alabaster, Maylene and Saginaw area:
$150,000-$200,000: 132 (131)
$200,000-$300,000: 90 (86)

Helena and Pelham areas (Shelby Co.):
$150,000-$200,000: 169 (166)
$200,000-$300,000: 127 (124)

Helena and Pelham areas (Jefferson Co.):
$150,000-$200,000: 2 (2)
$200,000-$300,000: 22 (21)

Chelsea:
$150,000-$200,000: 82 (99)
$200,000-$300,000: 118 (120)

David

Here’s a quick look at some current numbers for the Birmingham and Shelby County housing market as we approach mid February, courtesy of the Birmingham Multiple Listing Service…

Number of homes available:

Helena & Pelham area (Shelby Co.): 497
Helena & Pelham area (Jefferson Co.): 60
North Shelby/Hoover area (Shelby Co.): 665
Chelsea: 320
Altadena/Cahaba Heights area: 54
Liberty Park/Vestavia area: 438
Alabaster, Maylene & Saginaw area: 374
Calera, Montevallo & Wilton area: 360
Columbiana, Westover & Wilsonville area: 88

Number of homes for sale based on current selling price:

Alabaster, Maylene and Saginaw area:
$150,000-$200,000: 120
$200,000-$300,000: 89

Helena and Pelham areas (Shelby Co.):
$150,000-$200,000: 161
$200,000-$300,000: 121

Helena and Pelham areas (Jefferson Co.):
$150,000-$200,000: 3
$200,000-$300,000: 20

Chelsea:
$150,000-$200,000: 93
$200,000-$300,000: 122

Bottom line: There are still lots of choices!

David

The latest numbers for home sales in the Shelby county and Birmingham area confirm that 2008 saw a significant downward slide in the market.  A report by the Birmingham Association of Realtors shows home sales down by 29% for the year, compared to 2007.

Average prices slipped by 5%, and the average number of days homes stayed on the market stood at 100 for 2008, up from 96 in 2007.  Home sales for December, 2008 totaled 798, which is down by 32% compared to December, 2007.

While 2008 home sales in Birmingham and Shelby County, Alabama dropped 29% compared to the year before, inventory continues to drop, and experts say the market remains poised to make a significant improvement.

It’s interesting to compare these statistics with other markets.  While home values in Birmingham lost 5%, prices dropped closer to 11% when averaged nationally, and 32% in California.  So, as we have stated before, while our local market does wind up seeing most of the same trends that occur elsewhere in the country, the undulations in Birmingham and Shelby county home sales are typically nowhere near as extreme.  And for that, we can be thankful.

While our local market numbers aren’t what homeowners or people in the industry want to see, there is reason to be optimistic that home sales will pick back up.  As people knowledgeable about real estate market trends are well known for saying, it’s only a matter of time.

Negative news-saturated owners are facing fear about selling their homes. A good way to counter that is by obtaining expert information about what's happening with the market right here in Shelby county.

With our climate of 24-hour negative news these days, a number of homeowners who would like to think about selling are having to deal with fear.   You may be uneasy, wondering how long it will take to sell your home.  And then there’s the question of whether you might wind up with as much money in your pocket as you’ve been hoping.  And if a foreclosure pops up in your neighborhood, what then?  Would you wind up feeling even more uneasy about selling?  So, what to do?

Look carefully at homes that are selling in the area, and those that are not selling.  What’s the difference?  Price is certainly a huge consideration, but so is appearance.  A third factor—that is making more and more difference in whether a home sells these days—is how it’s marketed.  Not all homes for sale get the same exposure.

The fact that homes continue to sell—even in the middle of the constant barrage of negative news—clearly demonstrates that the local market continues to be healthier than many people realize.

Here’s another reason to feel that better times are ahead:  Inventory—the number of homes for sale—fell by 19% during 2008.  At the end of the year, there were 10,201 homes for sale, compared to 12,642 at the end of 2007.  If that trend continues, then it’s safe to conclude that the ‘Buyer’s Market’ is beginning to shift more back into balance.

If you’ve been thinking of selling your home, but are perplexed or somewhat uneasy about the current market and your prospects to sell, there’s an easy solution:  Give us a call.  We will be glad to take a close look at the history and trends of home sales, targeted to your neighborhood.  We’ll then be able to present you with a projection of how long your home might need to sell, and at what price a buyer would consider reasonable.  This could be valuable information to help you with selling during this around-the-clock negative news era.

Colleen and David

Here’s hoping you had a Merry Christmas!

As we wind down the last few days of 2008, here’s a look at how many homes are for sale in the Birmingham, Alabaster and Shelby county areas. We did an update like this in November, and it’s interesting to see that—in nearly every case—inventory has dropped from the earlier update. The numbers in parentheses are how many homes were for sale as of the November update:

Alabaster – 372 (389)
Altadena/Cahaba Heights – 33 (50)
Calera – 297 (297)
Clanton – 171 (179)
Columbiana – 44 (52)
Chelsea – 249 (255)
Helena – 245 (269)
Hoover – 939 (982)
Indian Springs – 10 (32)
Inverness – 55 (56)
Liberty Park/Vestavia – 409 (452)
Meadow Brook – 7 (13)
Montevallo – 96 (100)
Pelham – 298 (333)
Vincent – 26 (27)

Source: Birmingham Area Multiple Listing Service

I suppose people are finally deciding that the opportunities to buy a home really are as good as they’re being told. And there’s no doubt about it: As the New Year gets underway, home prices and inventory will continue to offer buyers some of the best deals that have occurred in many years.

David

New statistics for the Birmingham and Shelby Co. real estate market show a drop in sales and prices, but there are some positive signs showing, too.

According to the Birmingham Area Multiple Listing Service, Inc., sales in June, 2008 totaled 1,253; that’s 35% below the 1,929 sales recorded in June, 2007. For the first half of 2008, 6,702 sales were recorded. That’s 28% below the 9,317 total sales reported for the same period in 2007.

The average price of a home in June, 2008, stood at $196,504, which is about 5.4% below the June, 2007, average price of $208,767.

The numbers hold good news for sellers. June, 2008 inventory stood at 12,580, which is 714 fewer listings than the 13,294 homes for sale during June, 2007.

Good time to buy a home? You bet...

Here are some more numbers we consider encouraging. While the average price of homes for sale from January through June of 2008 ($194,000) did drop compared to the same period a year earlier, the drop is pretty slim: Only about 2%. In other real estate markets, the drops in average price have been quite a bit higher, so, once again, the swings in the Birmingham/Shelby Co. markets are not nearly as extreme.

What about foreclosures in our area? Those dropped by 17% during June, 2008, compared to a year earlier, according to the MLS. Out of a list of 100 major U.S. cities surveyed for foreclosure activity, Birmingham rated 97th.

Every business has up and down cycles, and real estate is certainly no different. While stories about ‘the dire real estate market’ continue to make the news, you might be wondering if you should forget trying to buy a home. We would suggest that just the opposite is true. Given very good interest rates that continue to be available and a large, diverse inventory to choose from, this is an excellent time to buy.

David