While the Birmingham market is having its second best year ever, the state is not doing so bad itself.
Alabama had its third best year ever.
Across the state sales dropped 5% from 2006. This number is very insignificant compared to a lot of markets across the US, and the 13% overall average for the nation.
2006 and 2005 were the only two years to have higher numbers of transactions than the 57,083 we had in 2007.
The median price dropped to $217,000 a total of 1.8% drop for the nation, while Alabama held steady at about $129,000
In an article, State Posts Its 3rd Best Total Amid Decline, Grayson Glaze, director of UA's Alabama Center for Real Estate, "noted another positive for Alabama - a decline in the number of homes on the market since a peak was reached in July. This so-called "inventory" figure is considered a key indicator because having a high number of homes for sale puts pressure on prices." and "The long-term key in 2008 to generating stability in the housing market is the continued correction of the inventory imbalance, the continued improvement in the levels of housing affordability and the restoration of consumer confidence in the market place..."
Over the previous 2 years, 2005 and 2006, Alabama was experiencing record growth. Obviously, while this trend is fun to have it is typically not something you would experience for a number of years consecutively.
According to Grayson Glaze,
"Home sales in 2008 will represent a more sustainable pace when
compared to recent years where record sales and sales growth were the
norm..."
He also noted that Alabama has good indicators when the future talking about our economy and said,
"The state's underlying economy remains stable despite the slower
projected growth, state unemployment remains below the national average
and Alabama consumers' personal income continues to experience steady
growth..."
Looks like Alabama and the Greater Birmingham Area are proving to be quite resilient.
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