Alabama Real Estate Recovering: Where Does Birmingham Real Estate Rank?

Investors looking to Alabama for potentially lucrative options have several opportunities available, according to stats and figures from multiple sources released throughout the year. The latest – a report from CoreLogic – indicates that recovery for Alabama real estate is improving steadily as the state recovers from the worst real estate crash in recent memory. Nationwide, the average change in home prices over the past year stands at 12%. Alabama’s rate is modest compared to that number, coming in at just 3.3% – good for 38th in the country – but a few areas in the state show sustained and promising levels of growth. Take Birmingham, for example. Over the past year, according to CoreLogic, Birmingham metro home prices rose by 6.8%, over twice the state’s rate. Only one metro area – Anniston-Oxford – was higher, at 8.3%. And surprisingly, even high-growth areas like Huntsville, Auburn-Opelika and Dothan experienced negative price appreciation (-4.9%, -5.5%, and -6.1%, respectively). What factors are at play for Birmingham that are resulting in positive growth? For starters, demand in Birmingham has improved and outstripped the rest of the state – to the point where even the metro area’s ample supply has become constrained. Fewer homes were listed in Birmingham in September 2013 than a year ago, and the area only represents 23% of the state’s overall listings, down by 1%. Meanwhile, unemployment has dropped, interest rates still remain incredibly low, and foreclosures are down as well. Foreclosures and other distressed properties have been the main force pulling down prices in Huntsville and Dothan, but Birmingham has had a better year. Therefore, investors looking to Alabama for advantageous properties can find ample room for success in the Birmingham market, judging by the latest indicators. Property owners who want qualified and experienced Birmingham property managers can turn to gkhouses.com. Contact us today and call 205.940.6363.