Preliminary Birmingham MLS market statistics through February, 2010 are disappointing at best for sellers and realtors but continue to support the notion that this is clearly still a buyer's market with great opportunities and bargains throughout the area. As a qualifier, these MLS market statistics are preliminary and are projected for February, 2010 in order to provide timely reporting of what is happening with real estate locally. Final numbers likely will be distributed next week in the local media but the figures and conclusions reached here are not expected to be materially diffferent. Also, this report is for single family residential and excludes townhouses and condominiums. I will provide comments next week as a follow up to this post as final numbers are released in the media.
Take a look at the chart above. First the good news. In comparison to January, 2010, sales in terms of units and volume ($) are up. Additionally, months inventory (non-average), a relative measure of supply and demand, is down slightly giving us hope that the market may have bottomed out. Finally, the number of days on market (time to sell) and sale to list price are nominally improved. The bad news is that in comparison to February, 2009, sales are down and months inventory are up both for the non-averaged (monthly) and 90 day average. The MLS market statistics graph below depicting months inventory (simple & 90 day average) probably illustrates it best; as shown from the graphic, months inventory, while dropping nominally overall from January, 2010, remains at levels well above the past 36 months.
Birmingham MLS market statistics are frustrating for realtors and sellers given (1) interest rates are near historical lows (under 5%!), (2) housing prices are very low historically with bargains in every price range and (3) the looming expiration of the federal tax credit for first-time and move-up homebuyers. The hope in the real estate community is that we will experience a surge in demand in March and April. As buyers become aware that time is of the essence to take advantage of the federal tax credit and the threat of higher interest rates is real, more people will begin to "get off the fence" and make a move, especially with an improvement in the weather. Unfortunately for some, it likely will be too late given that the federal government is not likely to extend the credit again.
For sellers, these MLS market statistics mean that you need to (1) price aggressively, (2) stage your home to impress prospective buyers and (3) engage an experienced, quality agent to maximize your net proceeds and minimize time on the market. For buyers, it means you continue to enjoy a strong negotiating position and have lots of choices before making a final decision.
Visit tax credit for more information about what the government incentive could mean to you as a buyer / seller in this market. Click free comparative market analysis (CMA) or send me an email with your address to get recent home sales and listings in your area to assist in determining an appropriate listing price for you home.
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