The Birmingham home sales market continued its hot streak through the end of the summer months. Posting a year over year high of 27% over August last year. All this is according to the Alabama Center for Real Estate (ACRE).
The big question for our industry is, “What does this mean for rental home investors?”
I posted a screen shot of a graph depicting sales over the last 16 years, because I think it is interesting and tells a pretty good story. It shows the cyclical nature of demand. As you can see, we were in a similar market back in 2003 and 2004.
If I was a rental home investor . . . and I am . . . I’d be watching where the trend goes from here. It is my opinion that we are currently in a very healthy climate, in terms of buying and selling. Though, with the pickup in demand, it does make it harder for you to find good deals to purchase.
The median home price according to ACRE was $180,000, which is actually down from last August when it was $185,000.
That median home price is still very favorable to rental home investors, given Birmingham has consistently had high average rents relative to this median price. That, along with favorable property tax bills, continues to make Birmingham one of the top places to purchase rental homes.
Click here if you’d like to read the whole report from ACRE.