When looking at local real estate markets, observing the foreclosure rate can be telling. For example, when foreclosure activity and the number of distressed properties on the market are high, home prices tend to be lower. On the other hand, as these discount homes leave the market, prices of homes tend to rise.
Investors, in particular, have been taking advantage of the high foreclosure rate over the last few years, turning many of these cheap properties into Birmingham, AL rental homes – allowing them to start to see an immediate return on their investment. However, as the number of homes entering into the foreclosure process declines and there are fewer distressed properties on the market, home prices are increasing and investors are having to compete with others in an effort to get these properties that are listed below market value while they are still around.
According to CoreLogic, foreclosure and delinquency rates both declined from April 2012 to the same month this year. However, unlike many other areas throughout the country with incredibly high decreases, the Birmingham real estate market is recovering – albeit more slowly than some other hot housing markets throughout the country.
In addition to the decline in foreclosure rates, home sales have increased significantly for the Birmingham area so far this year. Specifically, residential home sales increased 20.4% from May 2012 to May 2013 – a nice increase that shows definite signs of recovery.
What, exactly, does this information mean for investors? In short, it is still a great time to buy investment properties – especially if you are looking to place the home on the market as a rental property and wait out the housing market recovery before selling the home.
Fortunately, if you do not want to be a landlord, then you can always call upon Birmingham property managers to manage the property for you. If you are looking for a property manager for your Birmingham rental home, then contact gkhouses.com today at 205.940.6363.