More good news for the Birmingham area real estate market: the number of homes sold in the Birmingham metro saw a bump of 12% in the month of October from October 2012. So far this year, home sales have gone up by 11%. Home prices have also gone up; October’s average price bumped up by 3%, while median prices have increased by 10% so far. We discussed earlier how the recovering Birmingham real estate market has been driven by lower unemployment, low-interest rates, and fewer foreclosures. The fact that 21% of all home sales in October were foreclosures is an indicator that the city’s foreclosure inventory is falling fast enough to raise prices. Considering that the average home price increase over the past year was 12%, Birmingham is caught up with the rest of the pack. What This Means for Investors If you are waiting for a time that is ideal for buying single-family homes and turning them into rentals, now maybe that time. The existing home market is driving the area’s latest real estate success and likely will continue to do so through 2014. Another factor that will play into successful real estate investments is the nature of the Birmingham market itself. Major institutional investors – the kind that purchases hundreds of properties across the country seemingly every month – simply aren’t coming to Birmingham in abundance to buy homes for a variety of reasons. That creates a far less competitive environment for smaller buyers who want to take advantage of growing communities and the “hidden gems” they possess. Birmingham is such a market, and with a high rate of home sales, there are plenty of opportunities to purchase a single-family home and convert it into an income-producing rental. If you want to learn more about how the latest statistics are in your favor for single-family home investment, contact gkhouses.com and call 205.940.6363.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.