Birmingham AL Real Estate New Homes Market Shows Hope!!!

FINALLY!!! There is a light at the end of the tunnel!

One of the big indicators we look for in a market recovery, and even here in the Birmingham AL Real Estate market, is the movement of new homes.

Typically, if we see the numbers of new homes constantly rising, we know the market is potentially slowing, and if we start to see a dip in the number of new homes on the market, it shows us that sales are picking up. Now, let me add, that this is also speaking in generalities. We also research stats to see if the hunches we are getting and indeed good indicators.

According to an article in the Birmingham News, New Home Sales Show Hope by William Thornton, we are beginning to see some positive movement.

In the month of February, we saw two good signs. One, sales of new homes increased, and, two, the amount of new homes available lessened.

In the article Tom Brander, author of the Rudulph-Brander Monthly Birmingham Area Real Estate Report, which tracks new home construction, said, "We may be at this low level for a while, but it's better than a free fall, which is where we have been..."

Sales of new homes in our area increased from 240 in January to 282 in February (February 2007 had 408 sales), while the average price dipped from $256,560 in January to $222,464 in February. This price dip was due to the amount sales in the $100,000 to $200,000 range.

The executive vice president for the Greater Birmingham Association of Home Builders, Bart Fletcher, noted that, "February's results represent an improvement at a time when there have been lots of new homes on the market... (and he) believes homebuyers think the market is "stable." "

Another postive signs was a shotened absorption rate from 8.4 months of inventory in January to 7.3 months in February.

Newcastle Construction president, Glenn Siddle, stated that "February ranks as our best month in six months... (and) Around October or November of last year was when we saw a pretty definite decline in traffic that continued until this year."

SO, what does this all mean to you? It means things are looking up in the Birmingham AL Real Estate Market, and now may still be a good to buy and a good time to sell.