A Case of COVID, 2020, and Birmingham Real Estate

Happy New Year! It’s been a while since I posted, however, it was not by choice. At the beginning of December, I joined many others by getting COVID.

COVID, 2020, and Birmingham Real EstateMy case was moderate, which I am thankful for. Even a moderate case can leave you fatigued and unable to do normal everyday activities. I am happy to say that I am pretty much completely recovered.

I spent the second half of December catching up on my appraisal work which left little time to blog. I decided that I would get caught up, enjoy the Christmas season, and get a fresh start at the beginning of the new year.

Looking back at 2020 I can personally say that it was the best year for my business that I have ever had. I thank my many clients who put their trust in me to help them with their valuation needs.

The Birmingham real estate market last year was unlike any that I have ever seen. It started off great in January and February with numbers equal to or surpassing 2019, however as everyone knows in March we were introduced to COVID.

While COVID initially suppressed the real estate market, it did not take long for things to change. Needless to say, the market recovered and exceeded many metrics from past years.

I believe the most significant factors affecting the Birmingham real estate market were the lack of housing supply combined with strong buyer demand. It was the classic example of economic supply and demand: when demand is great and the supply of goods is low then prices will rise.

Birmingham has historically been a relatively stable market in terms of housing prices. This changed in 2020 and I witnessed more homes being under contract higher than their list price.

In the coming weeks, after all of the MLS sales data is collected, I will unpack how things turned out. I have heard that 2021 will most likely be similar, however, with a new presidential administration, it will be interesting to see how the real estate market will be affected.

Will COVID play a significant role this year and will the vaccine change how business is conducted? It is hard to predict, and we’ll have to track it as the year progresses.

In addition to keeping an eye on supply and demand, we’ll also need to watch what happens with mortgage interest rates and the unemployment rate. The access to cheap money and buyer confidence with their job situation will play a big role on the demand side of the housing market.

In addition to writing posts about Birmingham real estate stats, I will continue to include articles about how and why appraisers do what they do. If you have a question about the appraisal process feel free to leave a comment below and I’ll do my best to add it to my topics to be covered.

Lastly, I want to thank all of those who read and follow my blog. I never imagined when I started my blog that I would still be writing about the appraisal process and market stats 10 years later. I appreciate each and every person who takes the time to read and/or comment. God bless and stay safe out there.

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Comments

  1. Tom, I am so happy that you survived COVID-19! I had no idea you were sick. Great to have you blogging again! My best to you in 2021!

  2. Wow Tom, I didn’t know you had COVID. I’m so glad you’re okay and that your case was mild. I hope everyone else in your household is doing well also.

    Looking forward to this year and seeing what your market does too. Take care.

    • Thanks, Ryan. I look forward to seeing how your market responds to the new administration as well as the continuing COVID crisis. These are crazy times indeed.

  3. Jim Lester says

    Tom,
    Over the years I have enjoyed reading your blogs. I am very sorry to hear that you contacted Covid. Yes it does take lots of time to recover from the fatigue. Speaking for all of us who get your blog we all wish you well and much health and happiness in the future. I have been in the real estate business as a contractor, Realtor and past mortgage broker. Nothing I have not done with exception of appraising properties. But thanks to you my property evaluations are much more accurate than my competition. Not all my experience since 1986 but alot related to the information that you provide to us in you blogs. Please keep them up when you can… we DO read them! Thanks again! Jim from Columbus, GA

  4. Tom,

    Sorry you picked up Covid but glad to hear you’ve recovered. Hope it wasn’t on an assignment. Congrats on 10 years.

    Joe Lynch

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