It’s getting close to the end of the year, and before we know it, Christmas will have come and gone and the ball will drop in Times Square to signal the beginning of 2014. Already, this year has seen remarkable improvement in the Birmingham real estate market. Prices are up; more homes have been sold; foreclosures are down; and investment dollars have poured into the area by the tens of millions, if not more. Without a doubt, most single-family home investors have had a great chance at substantial revenue this year. What, then, can we expect for 2014? Expect 2014 to be Similar to 2013 Those looking for a breakthrough, historic year in real estate across the country in 2014 will probably be disappointed, but unnecessarily; 2014 will most likely resemble 2013 in that we’ll see steady improvement and a definite recovery from the past few years. Single-Family Homes Will Dominate the Market Single-family homes and multi-family homes experienced a great 2013, especially in Birmingham. But some project that multi-family home activity will subside slightly in 2014 as fewer properties throughout the country will be constructed. In Birmingham, the vacancy rate is 11.6%, mostly due to inventory shortage. This is a hangover from the recession, which, at one point, saw a vacancy rate as high as 14.4% in 2010. There is an indication that housing vacancies are falling, which suggests more homes coming into the market as housing prices rise. For multi-family homes, like apartment complexes, there may not be enough new construction to counter. We’ll cover more indicators for 2014 as the new year draws near. If you want to learn more about the Birmingham real estate market and how a dedicated property manager can help, call gkhouses.com at 205.940.6363 today.
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.