Birmingham-Area Home Sales, Prices Decline In November

By: Associated Press | Alabama's13.com
Published: December 20, 2007

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BIRMINGHAM, Ala. (AP) - The housing slump has hit Alabama's largest real estate market.

Real estate agents say the total number of homes sold across the Birmingham metro area fell 20 percent in November compared to sales one year ago. It was the sharpest decline of the year.

And the Birmingham Association of Realtors says it reflects problems linked to the

subprime mortgage crisis.

Aside from a decline in sales, home prices fell, too. Median home prices declined more than 1 percent to $158,000.

Sales of houses, condos and townhomes in the Birmingham region totaled 1,183 last month, down from 1,485 homes a year ago.

Fewer homes are on the market these days, which officials consider a positive sign.

Subprime mortgages resulted in an increase in the number of homes on the market earlier this year because of a jump in foreclosures.

That was caused by people not being able to afford their motgages when they increased because of hikes in adjustable rates.