Over the last few years, the Alabama real estate market has essentially been in the same boat as other real estate markets across the country. After the housing market crash, Alabama started to see a high number of foreclosures and other distressed properties.
As homebuyer and investor confidence declined, home prices started to fall as a result of having to compete with the low prices of foreclosures and short sales and due to a lack of demand. This same trend has been present throughout much of the United States over the last few years—until recently.
Fortunately, the real estate market locally as well as nationally is starting to improve as investors and potential homebuyers are regaining confidence and have a renewed interest in real estate.
Those at the Center for Business and Economic Research (CBER) are predicting that the overall economic situation throughout the state will continue to improve throughout the remainder of the year. In fact, these economists are calling for job growth in everything from real estate to healthcare services.
One gauge of local real estate market progress involves looking at the number of home sales. For the Birmingham Metro Area, home sales were up 5.7% in March 2013 in comparison to March 2012, according to the Alabama Center for Real Estate. Furthermore, the median sales price was $149,000 in March 2013 in comparison to $140,000 in 2012.
With investors taking a renewed interest in the Birmingham real estate market, many of these investors are purchasing foreclosures, short sales, and other discounted properties and are turning them into rental properties—this initiative is great for those looking to rent a house in Birmingham, Al.
Why, exactly, are investors purchasing homes and turning them into rentals instead of flipping them for a profit?
Home prices are still low, but are steadily rising. With experts predicting that home prices will continue to rise throughout the future, many investors are purchasing discounted properties and are utilizing property managers in Birmingham, Al to manage the property until the market picks back up—at which point these investors will more than likely sell the home for a bigger profit.
In conclusion, the Birmingham real estate market is making progress and the overall economic outlook of Alabama is positive throughout the remainder of 2013 and in the foreseeable future.