Birmingham New Home Sales Up in September

As we continue to monitor Alabama’s real estate market this quarter, and interesting statistic has emerged in the Birmingham area: even though total home sales are down in September, the sales of new homes in Birmingham have actually increased 10% during this time. Below is an article from, originally written by Dawn Kent of the Birmingham News, regarding this recent trend in Birmingham’s real estate market.


While metro Birmingham’s total home sales dropped last month, there is a bright spot in new home sales, according to a local real estate analyst’s latest report.

Tom Brander said today that the area’s home sales totaled 898 in September, a 5 percent decline from August and a 26 percent fall from September 2009.

But new home sales, included in that total, were 148 last month, a 10 percent increase from August. This marks the second month in a row of improvement in new home sales, Brander said.

Average sold prices also are returning to normal, after last spring’s federal tax credits for home buyers contributed to a dip.

Back then, sales were up, fueled by the incentives. But prices fell as many first-time home buyers entered the market, and a substantial number of less expensive homes were sold.

Now, the number of mid- to upper-end homes sold is rising slightly, compared to the lower-end, contributing to the latest price trend.

“The twelve month moving average price line for both new and used homes is heading up!” Brander wrote in his blog. “This reflects a normalizing mix of home prices, with the elimination of the distortion due to sales of the lower-end being inflated by the tax incentives.”


Original article in its entirety can be found here on

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