The Alabama Real Estate Confidence Index (ARECI) measures the sentiment of real estate professionals and industry affiliates across Alabama on a scale of 0-100, with 50 indicating no change expected.
According to the ARECI, sentiment toward the housing market improved for the real estate community in two important measures- sales indications and price expectations. The index showed that sales indications improved from 52 to 55 (expansion) and price expectation improved to 50 (neutral sentiment) for the first time in the three years that the survey has been conducted. The results also showed that participants maintained positive sentiment on the statewide conditions at 53 (same as last quarter). Inventory expectations declined to 49 from 52 indicating some increases of supply expected.
Coming out of 2012, it must be encouraging for home buyers seeking new homes for sale to see that the real estate community still holds an optimistic outlook toward the 2013 housing market. Across the state of Alabama, 76% of local hosting market shave shown improvement in 2012 and the Birmingham metro area housing market has specifically had a 16.5% increase in new home sales compared to 2011. With home prices rising, home values appreciating, and home sales increasing, all indications point toward another positive year for the Alabama housing market.
To read more on this topic, visit the Alabama Real Estate Confidence Index (ARECI)