Examining the August Alabama Real Estate Report | Property Management

As property management pros, keeping an eye on the state’s real estate market – particularly its health in a few key indicators – is a part of our role in helping advise our owner clients on the market. The Alabama Center for Real Estate (ACRE) is a big help in this department, as they regularly supply the state with up-to-date real estate market information on a monthly basis. For August 2014, they released a report detailing several major trends in the market while summarizing the general health of the market as a whole. On whole, there were fewer home sales compared to a year ago, in August 2013. But, 68 percent of the state’s reporting associations reported favorable sales gains compared to last August. It’s just that a few districts are pulling down the state’s number. Depending on where you live, homes are being sold at a fairly standard pace, which is good for owners who may want to cash in on their investment. Speaking of cashing in, home prices continue to rise. The median selling price in the state for August 2014 stood at $141,901, which is 12.8 percent higher than it was a year ago. It’s also a 1.7 percent increase from last month. Two-thirds of the state’s associations reported increases in the median sales price. This is a major trend that has been moving forward for the past year to two years, and there are no signs that it will slow any time soon, as tight housing supply continues to provide upward pressure for prices. The state’s inventory-to-sales ratio is going up across the state, but for metro areas like Birmingham, there were just 7.2 months of supply – down from what we’ve been used to. That’s just outside a balanced market. We’ll see that number decrease as we approach equilibrium over the next six months. If you’re looking to potentially pick up another property as an investment, now may be the time. Home prices will probably rise each month for the rest of the year and heading into 2015. If you’re looking to sell, you can get more value each month if you wait, especially if supply decreases over the coming months. Contact us for more insight about the real estate market and how you can take advantage.