Your Guide to Alabama Real Estate Trends in 2021
If there's anything to deduce from market trends of the past year, it's that people want to live in homes. From the housing boom at the start of the COVID-19 pandemic to the all-time low mortgage rates, people want homes.
But what are the demographics of potential Alabama homebuyers? Where are people buying in the state, and what are they looking for in prospective homes?
This article aims to answer that and all things Alabama real estate. Let's dive in.
Buying a Home in Alabama
As of November 2020, home sales increased across the state by almost 25% on a year-over-year basis. Inventory of homes could not keep up with the demand.
In fact, the average inventory to sales ratio, which evaluates how long a home sits on the market, plummeted. While homes regularly sat on the market for several months, now they were often sold in nine weeks.
Considering the average closing period falls close to 30-days, this means that homes were rarely sitting on the market for a month without an offer being placed on them.
Cost of Alabama Homes
Following basic economics with the rise of demand and the lessening of supply, the price of homes in Alabama jumped as fewer and fewer homes sat on the market.
The average price of these homes increased at a smaller, but still significant margin, of 12% from the previous year. Surprisingly, these home sales are occurring at increased rates across the state.
A standout, however, is Huntsville, Alabama which continues to develop into one of Alabama's largest metro areas.
Rentals and Multi-Family Homes
Despite housing continue to increase in price (and the supply of homes staying low), the cost of rent also continues to go up. This seems to come as a result of a variety of factors.
First, more and more housing options are becoming available, especially in metro areas like Huntsville which is experiencing large housing demands. Many want to live in a nice place, whether that be owned or rented.
As a result, more and more rental properties have entered the market, creating a surge for better rentals. Older properties or apartment complexes have had to keep up with the trends and are starting industrious renovations.
These renovations help them compete on the market, but comes at a cost to the current residents who may or may not require the amenities added.
Alabama Real Estate
At present, it is a seller's market and will remain this way for some time. Those looking to escape to the countryside are in luck.
Though urban and some suburban parts of Alabama are skyrocketing in price, hamlets like Chelsea, Alabama continue to grow at a steadier pace. Visit hollandhomesllc.com for more on Chelsea living.
Now that remote work is possible for so many businesses, lookout for great deals and beautiful properties in these hidden gems.
Living in Alabama
The Alabama real estate scene is falling into trends of most other states in the US. Prices continue to increase while supply continues to stay small.
With low-interest rates on mortgages, finding a new home is easy. Finding the perfect home (at the perfect price) looks like it will remain difficult, at least for the foreseeable future.
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