Alabama’s Real Estate Market Continues to Heal
The Alabama real estate market took a turn for the worse just a few years ago. In 2007 the entire country was facing a huge recession, but what looked like a positive economic increase in 2010 failed to reflect the nature of real estate in Birmingham. In fact, it seemed as though all aspects of the economy, except real estate, were experiencing growth.
Fortunately, 2010 has proven to be the lowest point in Birmingham’s real estate recession, with each consecutive year continuing a positive trend for improvement. This has Birmingham real estate agents rejoicing. Finally, we can find appropriately priced homes for purchasing, and we can sell homes for their desired amounts. This results in happier clients, and happier clients mean a happier us!
Let’s take a look at how the third quarter of 2015 has proved, once again, that Birmingham’s real estate is improving.
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Birmingham Real Estate Sales
While the third quarter of real estate sales did decrease slightly from the second quarter, there is nothing to be alarmed about. It is expected that the third quarter sales will drop every year for reasons like weather, holidays, etc.
Instead of comparing the third quarter to the second, compare the third quarter in 2015 to the third quarter in 2014. This provides a more informed explanation of Birmingham’s real estate market.
When compared, you can see that sales from 2014-2015 are up a whopping 15.4%! In addition, sales have increased a total of 32.8% on average over the last 5 years. This is all a great indicator that Birmingham’s market is continuing to move towards a more balanced state.
Supply and Demand
In keeping with the trends, supply and demand have also seen improvements.
Supply is up 13.9% since 2010 where the supply peaked at 14.4 months’ worth of supply. The month of October averaged 6.9 months, which is much closer the Alabama’s equilibrium of 6.0 months.
Birmingham real estate agents are also seeing an improvement in demand. In fact, the inventory to sales ratio is continuing to even out, decreasing 20.6% on average over the last 3 years.
Birmingham Homeownership
Many factors can go into improving a real estate market, including homeownership. When younger people are finally able to receive incomes that allow them the financial stability to afford a home, demand increases, and the real estate market excels.
When looking at homeownership trends specifically in Birmingham, you can see that something rather exciting is happening. For the first time in 11 years, homeownership among individuals under 35 years old has increased. The increase is only a 1% change, from 34.8 to 35.8, but its significance is huge. If more and more young people are able to afford homes, these positive real estate trends could soon skyrocket!
Birmingham Real Estate Agents Can Help!
If you, too, are experiencing the positive effects of our new and improving economy, and want to consider looking for a home, you should speak to one of our professional Birmingham real estate agents today! We look forward to helping you find the home of your dreams.
