More metropolitan areas, such as Birmingham, AL, are showing a rise in single-family home prices, according to the latest quarterly report put out by the National Association of Realtors (NAR). This is continued good news for those searching for Birmingham homes for sale, as increasing home prices show signs of a growing housing market and lead to higher home values. With record low mortgage rates, more and more prospective home buyers looking at new homes for sale in Birmingham are taking advantage of the current market and are deciding to purchase now.
The median existing single-family home price increased in 110 out of 147 metro statistical areas (MSAs), which was based on closings during the second quarter in comparison with the same quarter of last year. The first quarter of 2012 showed 74 metro areas to have home price increases in a year-over-year comparison. In the second quarter of 2011 there were only 41 metro areas that showed price gains.
NAR President, Moe Veissi, said that prospective homebuyers in 2012 have a historically high amount of buying power. “Home buyers today can stay well within their means. Record low mortgage interest rates and an over-correction in home prices have opened the door to many potential buyers,” said Veissi.
Existing-home sales in the South rose 1.3% in the second quarter of 2012 and are 7.7% above the existing-home sales during the second quarter of 2011. The median existing single-family home price in the South increased 7.4% in the second quarter from the previous year.
NAR chief economist, Lawrence Yun, remarked that it is encouraging to see more and more metro areas with rising median home prices, and that this increase is, “improving the equity position of existing homeowners.” Yun went on to say that home prices are predicted to rise in even more markets across the country during upcoming quarters.