March, April and May proved to be very encouraging months for the Birmingham real estate market. Metro area residential sales were up 5.7%, 9% and 20% respectively. And, for another month in a row, Birmingham has seen more improvement. Compared to last June, sales increased by 1.3%.
This increase, while small, still shows that Birmingham is on its way to recovery. In Alabama, many other cities have also seen increased home sales, improving year-to-date sales by 9%. Additionally, national homebuilder confidence rose to the highest it’s been since January 2006, hitting 57 points. Both of these jumps further prove the revival of the housing market. But what does this mean for the prospective homebuyer? It means you have not yet missed your chance to buy a new home!
There have been many published articles and opinions by financial professionals stating that 2013 is the year to buy a new home. With the numbers Birmingham has seen so far, the experts couldn’t be any closer to the truth. One in particular, John Paulson, the renowned hedge fund manager and founder of Paulson & Co., thinks that we’re “just at the beginning of the recovery” and that ”it’s not too late to get involved.”
John Paulson isn’t the only one who feels this way. Chief economist of Quicken Loans, Bob Walters, uses the housing affordability index to explain why people should be buying houses. When the index is high, like it is now, buyers can buy more house for their money. A home that may have been beyond their budget 10 years ago is now within reach. This gives homebuyers more freedom when choosing a house, allowing them to buy the home of their dreams.
Home prices and mortgage rates are still at historically low numbers. It should be known however, that buying sooner is much better than later. Home prices will continue to rise with the more homes sold, closing this wonderful window of opportunity.
Sources:
http://blog.al.com/acre/2013/07/birmingham_metro_area_resident_2.html
National Association of Home Builders
http://www.nasdaq.com/article/why-2013-is-your-lucky-year-to-buy-a-home-cm251041