The Birmingham News reported last week that forecasts from local real estate analysts expect Birmingham's home sales to rise over 7% in 2012. This comes on the heels of other positive real estate news as the National Association of Realtors also reported that nationwide home sales have increased for the 3rd straight month.
Tom Brander, the local real estate analyst who made these initial forecasts, did note that a 7% increase would be a considerable jump over the 2% increase from 2010 to 2011. One factor, he mentions, for the rise in 2012 should be the increased availability of new homes. Builders slowed their projects during 2010 and 2011, but as the foreclosure inventory eventually shrank the basics of supply and demand kicked in. Nearing the end of 2011 builders started taking on more projects again as demand steadily increased. As builders continue with new units the disappearing foreclosure market should help boost both sales and prices, making for a very interesting year.