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 AL.com, originally written by Dawn Kent of the Birmingham News, regarding this recent trend in Birmingham’s real estate market.

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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.”

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Original article in its entirety can be found here on AL.com.

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