With 2012 over, many prospective home buyers who have been considering purchasing new homes for sale in Birmingham are anxious to know what lies ahead regarding the housing market in 2013. Recent reports are showing continued positive trends as well as a growing number of local Alabama markets that are displaying substantial signs of improvement.
According to the Alabama Center for Real Estate (ACRE), home sales in Alabama during the month of November were 6.9% higher than the same period in 2011. Through November, year-to-date (YTD) home sales have increased by 6.4% compared to 2011.
This rise in home sales is consistent with nationwide trends, which posted a 14.5% increase in sales from November 2011, according to the National Association of Realtors. With lowering inventory levels, record low mortgage rates, and home prices consistently rising on a national level, many potential home buyers have felt a sense of urgency and have chosen to purchase new homes for sale before prices rise higher.
This rise in demand has been felt across the state of Alabama, as 76% of the local Alabama markets are reporting sale growth gains compared to the previous year. YTD metro area market sales, which are up 9% from last year, have outperformed both midsize and rural areas.
With rising sales, comes rising demand. With rising demand, comes rising prices. This trend of rising home prices has also been present in local Alabama markets over the past year. ACRE reports that the statewide median sold home price in November increased by 7.3% from the previous November. Now is the time to buy into new golf home communities, like Ross Bridge, as home prices are projected to continue increasing over the course of 2013.
There are five major metro areas that represent 70% of Alabama’s sales, and each has shown positive year-over-year growth rates (except for Tuscaloosa which was down 1%, primarily due to increased demand in 2011). Prospective buyers who are considering purchasing new homes for sale should find this as encouraging news. Seeing multiple local markets show considerable improvement over a year’s time is a strong sign that a housing recovery is underway.
According to Global Insight’s latest short-term economic outlook, one of the most important fundamental sectors of the economy, housing, is improving. They expect 2013 to set the stage for more broad based economic growth and improvement in 2014.