Since the beginning of the year, increases in home sales have ranged from a 10.8 percent jump in March to a nearly 19 percent increase in January. The pace cooled in May, when homes sales increased only 4.2 percent, according to the agents' group, which has been keeping records for more than a decade.
A cooldown of Birmingham's real estate market could be related to the end of the school year, people taking vacations, interest rate fluctuations or other outside factors, said Tommy Brigham, chief executive of RealtySouth, Alabama's largest residential real estate agency.
Brigham attributes the recent slowdown in the Birmingham area to a low inventory of homes on the market. He estimates the city has a four-month inventory of homes for sale. Typically, Birmingham would have a six-to-eight month supply of homes.
The market is "very tight inside I-459," he said. "Those homes that are sitting on the market in those areas are priced too high."
The low supply "is still providing a seller's market in Birmingham," said Brigham, who sees the slowdown as affirmation that Birmingham's market is healthy. In many areas of the nation, concerns are growing about bubble-like conditions in residential real estate markets because of stampeding sales figures.
Year to date, existing home sales in the Birmingham area are up 9.1 percent, with a total of 8,080 homes sold. The median price year-to-date is up 9.8 percent to $160,000.
There are 'bubble' areas in the Bham area. Not of the magnatude of the West, but a downturn would affect. In some parts of a Bham area that I live in, the house price has tripled in the last 2-3 years 150K to 450K. I see alot of teardowns of 150K house to build 450K and lots of home addons, and the like. I am not in a hot area, but the tax value of my house has gone from 175K to 250K in the last 2-3 years. So a crash would hit the RE related services. Also a crash would hit city services as tax revenue slid. Say my house tax bit declines 33%.
My purpose was to show that there is evidence for a more widespread slowdown than just the large markets. If Bham is having a downturn, then such a downturn will affect everywhere and not just the coasts.
I agree, here in So. California our housing inventories have also doubled and the prices are starting to drop. I have to agree with Mr. Warren Buffet (after all he is a billionare, the old man knows what he's talking about) and just like he said a year ago, FORD has made huge cuts (an estimated 130,000 jobs will be affected including the multiplier effect.) Now the real questions is, where will we be a year from now? Looking at local date (S. cali) we peaked in March of 2005, perhaps that is a good indication of real home values, if that is true a good 10% drop in price correction is due (so bad). However there are signs and others with more experience than me who claim a 20% drop or more.
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- al.com
Birmingham News(Brimingham Alabama)
Since the beginning of the year, increases in home sales have ranged from a 10.8 percent jump in March to a nearly 19 percent increase in January. The pace cooled in May, when homes sales increased only 4.2 percent, according to the agents' group, which has been keeping records for more than a decade.
A cooldown of Birmingham's real estate market could be related to the end of the school year, people taking vacations, interest rate fluctuations or other outside factors, said Tommy Brigham, chief executive of RealtySouth, Alabama's largest residential real estate agency.
Brigham attributes the recent slowdown in the Birmingham area to a low inventory of homes on the market. He estimates the city has a four-month inventory of homes for sale. Typically, Birmingham would have a six-to-eight month supply of homes.
The market is "very tight inside I-459," he said. "Those homes that are sitting on the market in those areas are priced too high."
The low supply "is still providing a seller's market in Birmingham," said Brigham, who sees the slowdown as affirmation that Birmingham's market is healthy. In many areas of the nation, concerns are growing about bubble-like conditions in residential real estate markets because of stampeding sales figures.
Year to date, existing home sales in the Birmingham area are up 9.1 percent, with a total of 8,080 homes sold. The median price year-to-date is up 9.8 percent to $160,000.
Vader, thanks. I think that is an exception.
Best Regards.
In the bubble areas, I wonder what the ratio is between those trying to get in on the boom and those trying to get out afore the bubble burst.
Alabama is a non bubble area. But maybe the bubble can spread there too. Soon we will all be millionaries selling houses to each other.
There are 'bubble' areas in the Bham area. Not of the magnatude of the West, but a downturn would affect. In some parts of a Bham area that I live in, the house price has tripled in the last 2-3 years 150K to 450K. I see alot of teardowns of 150K house to build 450K and lots of home addons, and the like. I am not in a hot area, but the tax value of my house has gone from 175K to 250K in the last 2-3 years. So a crash would hit the RE related services. Also a crash would hit city services as tax revenue slid. Say my house tax bit declines 33%.
My purpose was to show that there is evidence for a more widespread slowdown than just the large markets. If Bham is having a downturn, then such a downturn will affect everywhere and not just the coasts.
Your story "More Strand homes for sale" is in reference to Myrtle Beach, not Florida. Horry and Georgetown are South Carolina counties.
Still, interesting stuff. Thanks for pulling it together.
I agree, here in So. California our housing inventories have also doubled and the prices are starting to drop. I have to agree with Mr. Warren Buffet (after all he is a billionare, the old man knows what he's talking about) and just like he said a year ago, FORD has made huge cuts (an estimated 130,000 jobs will be affected including the multiplier effect.) Now the real questions is, where will we be a year from now? Looking at local date (S. cali) we peaked in March of 2005, perhaps that is a good indication of real home values, if that is true a good 10% drop in price correction is due (so bad). However there are signs and others with more experience than me who claim a 20% drop or more.