Birmingham Real Estate Update: A Big Investment and Rising Prices

The Birmingham real estate market in the past week saw two pieces of good news that speaks well for the future of real estate in the greater Birmingham area and its overall economic potential – great news for investors, property owners and tenants alike. Home Prices Rise in August A report released by the Birmingham Association of Realtors, courtesy of data from the Birmingham Area Multiple Listing Service (MLS), suggests that housing prices rose in the Birmingham area last month. In August, the median home price rose by 9% to $169,000. Also, home sales rose by 4% in August from a year ago; 1,185 homes were sold in the area. We previously discussed how home prices grew by 3.9% from July 2012 to July 2013, so this monthly increase is another positive sign that the area is moving in the right direction. One thing to suggest that the trend has staying power: the number of homes sold in August (1,185) is very similar to numbers seen in previous months, like July (1,187), June (1,128), and May (1,255). Outside Developer to Make Big Investment It was also announced that The Redmont Group, a developer based out of Hawaii, will make a substantial investment of $50 million in downtown Birmingham over the next five years. The group has already started two projects: an apartment complex in Five Points South and an annex near Innovation Depot. This news is great for the metro area because investor capital is one of the fuels for a city’s economic engine. Real estate activity naturally increases when investors come to the city, and what is going on in Birmingham is no exception. If you are a developer, investor or tenant in search of homes to rent in Birmingham, AL and need qualified expertise in area real estate and property management, contact gkhouses.com and call us today at 205.940.6363.