Tag Archives: First Time Home Buyer

March 4, 2013 · 1:40 pm

New Home Sales in Alabama Post Gain for First Time in 4 Years

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Indicator of future supply – Alabama residential building permits up 8.4% from 2011. New home sales up 7.2% in 2012. Infograph courtesy of ACRE. All rights reserved.

Click here to view or print the entire monthly report.

In 2012, eighty percent of metro areas have experienced an increase in new home sales compared to 2011 with Tuscaloosa leading the state in 2012 with the highest growth rate of 18.9% followed by Birmingham (up 16.3%), Montgomery (up 12.4%) and Huntsville (up 1.6%). New home sales declined in Mobile (down 11.5%).

Demand: December new home sales in Alabama’s five metro markets, representing approximately seventy percent of all statewide transactions, experienced a 12 percent increase from the prior month but only .6 percent compared to the same period last year. Alabama’s new home sales growth rate in December was outperformed by the US market which experienced an increase of 8.8 percent from December 2011 but sales that slipped 7.3 percent from the prior month, according to the US Census Bureau & HUD. The release also reported that the results from the South region were up 15.6 percent from December 2011 but 8.4 percent below last month.

Supply: Statewide new construction inventory is 7.3 percent higher than last December as Alabama home builders are gradually increasing production to match improving levels of demand. US supply of new homes is down .6 percent. Only Birmingham has experienced reductions in inventory from last December. As a cautionary point of information, just a couple of month ago, it was all metro markets with the exception of Mobile. 

Alabama’s metro markets in December reflect 4.9 months of new home supply, an increase from 4.6 months of supply in December 2011 and slightly lower than 5.6 months last month. According to the US Census Bureau & HUD, the US inventory of new homes for sale increased to 151,000 homes or 4.9 months’ supply, an improvement from 5.4 months of supply in December 2011 (down 9%).

Pricing: Alabama’s metro market’s median new home sales price in December was $223,103, an increase of 2.3 percent from last month and 3.4 percent when compared to December 2011.

New Home Pipeline: December statewide housing starts decreased by 11.1 percent from the prior month but increased 16.6 percent from December 2011. Housing starts were up 6.5%. December statewide building permits slipped 3.9 percent from the prior month but were 19.3 percent above December 2011. Building permits were up 8.4 percent in 2012.

via Breaking News: New Home Sales in Alabama Post 7.2% Gain in 2012 | al.com.

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December 31, 2012 · 7:17 pm

Alabama Housing Affordability reaches record level

Third quarter index of 240.5 represents new high. Infograph provided by ACRE. All rights reserved.

The affordability index associated with Alabama housing during the third quarter increased by 8.5 percent compared to the third quarter of 2011. Another record level for this period of the year  (see graph).

According to ACRE’s quarterly report, the Alabama Statewide Housing Affordability Index for the third quarter of 2012 was computed at 240.5 eclipsing the prior record for the third quarter (2011) of 221.6.

Sixteen of seventeen, or 94 percent, of the local markets areas tracked in Alabama showed an increase from the same period in 2011. Monroe County was the lone exception.

The standard definition used by the Alabama Center for Real Estate in describing the statewide housing affordability index is as follows:

“The statewide housing affordability index is calculated as the ratio of the state’s actual median family income to the income needed to purchase and finance the state’s median priced home. An index number of 100 means that a family earning the state’s median income has just enough buying power to qualify for a loan on the state’s median priced, single-family home, assuming standard underwriting criteria.”

The higher the index number is, the more affordable the housing.

The median home price for the quarter used for the calculation is computed from the median prices of homes sold in the reported areas during the third quarter in Alabama.

The Alabama Housing Affordability Index of 240.5 calculated for the third quarter of 2012 means that an Alabama family which earned the statewide median income of $55,400 had over twice (or 2.40 times) the income needed to qualify for a loan to purchase the statewide median priced home.

The median price of homes sold and the composite monthly interest rate are the two primary factors that fluctuate and affect the affordability of homes in Alabama, as well as the nation.

The combination of a downward trend in interest rates and lower selling prices of homes in Alabama have resulted in the highest affordability levels on record and a tremendous opportunity for those ready and able to make a home purchase

via Alabama Housing Affordability Index reaches record level for 3rd quarter | al.com.

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August 8, 2012 · 10:00 am

Real Estate Market Strengthens: Homes Sales Rise

With growth forecasts pegged at around 2% for the year, 2012 marks the third consecutive year of slow growth from the steep declines seen in 2008 and 2009.  Growth is expected to pick up some in the second half of the year, but problems in the Euro Zone will likely have a dampening effect on theU.S.recovery.  Despite the anemic outlook for growth, the housing market is expected to continue to strengthen as the glut of unsold inventory is slowly absorbed by rising demand.

Home sales and construction began trending upwards in the middle of 2011.  Housing sales picked up in April after a couple of weak months that were attributed to the push forward effect of an unusually warm winter.  Normally, the season represents the nadir for activity in the market, but there was less of a slowdown than might be expected early in the year which was seen to subtract from the sales in late winter and early spring.  Compounding the problem was concern over the rising price of gas.

Now that gas prices have stabilized or declined, the sales pace for the last three months has settled into a better than 4% increase from the figures of last year.  Housing starts in April were 8% higher than the average number found over the last 12 months.  While multi unit housing is also increasing, the greatest gains have come in single family homes.  The growing numbers of new starts indicates increased levels of confidence among the nation’s home builders.

via Real Estate Market Strengthens: Homes Sales Rise – South Alabama Living Real Estate Team : South Alabama Living Real Estate Team.

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August 2, 2012 · 5:23 am

This Month in Real Estate August 2012

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August 1, 2012 · 9:08 am

Alabama Mid-Year Residential Report: YTD Sales up 10%

Alabama statewide residential sales during the 2nd quarter of 2012 were 9.7 percent higher than the same period in 2011. Year-to-date (YTD) through June, sales are up 10.0 percent from 2011. June residential sales in Alabama experienced a growth rate of 1.6 percent when compared to June 2011.

June represents the twelfth consecutive month that Alabama home sales have improved when compared to the same month from the prior year. Although at a slower pace, Alabama’s residential inventory also continues to shrink and that is favorable news for the market.

Supply: The statewide housing inventory in June was 34,458 units, a decrease of 10.2 percent from June 2011 and 16.9 percent from the month of June’s peak in 2008 (41,443 units).

There was 9.0 months of housing supply (6 months considered equilibrium) in June 2012 versus 10.2 months of supply in June 2011, a respectable decline of 11.6 percent.

June inventory in Alabama experienced a .1 percent decrease when compared to the prior month. Historical data indicates that June inventory on average (’07-’11) traditionally increases from the month of May .3 percent.

Demand: In June, Alabama residential sales outperformed the US market which showed an increase of 4.5 percent from the prior year (June 2011), according to the National Association of REALTORS (NAR). NAR also reported that the South region sales were up 5.5 percent from last June. Investors accounted for 19 percent of nationwide sales while 29 percent were all-cash sales and 32 percent were first-time home buyers (40% in typical market).

June statewide residential sales reflected zero growth from the prior month. This hints of perhaps caution ahead as historical data indicates that June sales, on average (’07-’11), increase from the month of May by 4.8 percent.

In comparison, US sales declined 5.4 percent from last month while the South region slipped 4.4 percent from the prior month (May 2012).

Pricing: The statewide median selling price in June was $125,921, an increase of .1 percent from last June and the fourth increase over the last nine months. In contrast, this figure represents a decrease of 1.0 percent when compared to the prior month. Historical data (’07-’11) indicates that the June median selling price traditionally increases from the month of May by 2.8 percent. Nationally, NAR says that distressed homes – foreclosures and short sales sold at deep discounts – accounted for 25 percent of June sales (13 percent were foreclosures and 12 percent were short sales), compared with 25 percent in May and 30 percent in June 2011. Foreclosures typically sold for an average 18 percent below market price in June, while short sales were discounted 15 percent.

via Alabama Mid-Year Residential Report: YTD Sales up 10%; 2nd Qtr Sales up 9.7% | al.com.

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