The National Real Estate Market Continued to Improve in April

As professional property managers, we like to keep track of the real estate market, not just in Birmingham and Alabama but across the nation. Our clients value our real estate expertise, and depend on us for our knowledge of the market and major trends. Arguably, the major trend of the year has been the housing price climb. Housing prices have continued to rise virtually every month over the past year. This has had a big impact on several key areas of the real estate market. For starters, homes are becoming more expensive to buy, which means the rental market has benefited because more would-be buyers are continuing to rent, thus driving up rents as well as driving down vacancies. Additionally, higher prices are contributing to fewer foreclosures and fewer homeowners who are in negative equity, which is a big relief to those who bought properties at the peak of the market in 2005 and 2006. We saw this trend taper off slightly in March, but April roared back. Prices grew by 9.4 percent year-over-year from April 2013, with a median sales price of $289,932. Prices also went up by 3.6 percent from March 2014. All of these price increases – especially some of the double-digit monthly increases we’ve seen over the past two years – has given pause to some investors, who fear a repeat of the housing bubble of 2005-2006. Fortunately, the rate at which prices have accelerated has slowed. This time last year saw a 4.6 percent month-over-month price increase, so already there is a bit of friction in the market. This friction will gradually slow the rate at which home prices are increasing, which will alleviate concerns of a bubble. Contact us for more detailed information about the Alabama rental markets and housing markets or if you are looking for professional property managers.