When gauging real estate market progress, one of the best indicators for strides toward recovery involves examining area home sales. Recently, the Alabama Center for Real Estate (ACRE) released a report that shows that home sales throughout the state are up 8.3% in the first six months of 2013 in comparison to January through June of 2012.
At the same time, the report revealed more information about the state’s real estate market progress, including rising home prices and a declining number of days the average home is on the market before it sells – both of which are positive signs.
Most projections of national real estate market trends for 2013 included rising home prices. As the number of distressed properties on the market decline and the inventory decreases, home prices will usually rise. However, the specific increase is very much determined by the local real estate market.
For example, states with a judicial foreclosure process tend to make slower progress toward recovery than those with a non-judicial foreclosure process. Fortunately, Alabama is not a judicial foreclosure state, and therefore is not as plagued with a backlog of foreclosure properties as other states.
Along with the increase in home sales and rise in home prices in Alabama, homes that are currently on the market are leaving the market 7% faster the first six months in 2013 in comparison to the same time in 2012. This is great news that definitely shows that consumer confidence in Alabama is rising as homes are starting to leave the market at a faster rate.
At the end of the day, the ACRE report shows that the Alabama real estate market is very much making significant strides toward recovery.
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