If you can believe it, the real estate sales market in Birmingham, Alabama is even hotter than it was back at the time of the real estate market crash in 2007 and 2008. Take a look at these graphs from the Alabama Center for Real Estate (ACRE).
The median sales price for a Birmingham home is up almost $30,000 from the high in 2006.
Check this out.
Average days on market is way down. Even down compared to the height of the real estate bubble.
Homes listed is also way down.
What does that mean for the rental investor?
- There is a natural churn of rental homes right now. We are experiencing it with our portfolio as I’ve heard other managers are. People who were reluctant landlords can now sell their home since sales prices are up.
- There is still a need for rental homes. 43% of household heads rent. That is up from 35% in 2006 which was the height of the bubble.
- Where are these new renters coming from? Easy, baby boomers getting out of homeownership. (Yes, you read that right). And Millenials who are delaying homeownership.
- Bottom line, there is a need for more housing units and they are being built at a staggering pace right now.
If you’d like to see the full ACRE Report.