DAPHNE

FAIRHOPE

SPANISH FORT

Daphne

Fairhope

Spanish Fort 

Daphne

$189,500            12 Summer Oaks Drive    Saturday 4/22    2 - 4PM

$300,000            9375 Sable Court            Saturday 4/22    11 - 1PM

$304,900            10548 Wales Lane           Saturday 4/22    2 - 4PM

$459,900            11678 Jericho Drive        Saturday 4/22    12 - 2PM

$574,900            8935 S Lamhatty Lane    Saturday 4/22    12 - 3PM

$750,000            710 Delachase Court      Saturday 4/22    2 - 4PM

$268,000            115 Donna Circle            Sunday 4/23       2 - 4PM

$299,900            147 Bay View Drive        Sunday 4/23       2 - 4PM

$299,900            555 Ridgewood Drive      Sunday 4/23       2 - 4PM

$299,900            569 Stuart Street           Sunday 4/23       2 - 4PM

$300,000            103 Laverne Cir             Sunday 4/23      2 - 4PM

$300,000            9375 Sable Court           Sunday 4/23       2 - 4PM

$315,000            201 Larosa Cir               Sunday 4/23       2 - 4PM

$320,000            9330 Sanibel Loop          Sunday 4/23       2 - 4PM

$325,000            24177 Limerick Lane      Sunday 4/23       2 - 4PM

$340,000            9649 Volterra Avenue     Sunday 4/23       1 - 3PM

$369,500            904 Van Avenue             Sunday 4/23       2 - 4PM

$375,000            110 Dewitt Circle            Sunday 4/23       2 - 4PM

$459,900            11678 Jericho Drive        Sunday 4/23       2 - 4PM

$475,000            10983 Roanoke Loop      Sunday 4/23       2 - 4PM

$535,000            9621 Cumbria Drive       Sunday 4/23       1 - 3PM

$750,000            710 Delachase Court      Sunday 4/23       2 - 4PM

Fairhope

$372,000            9864 Woolrich Avenue    Saturday 4/22    1 - 3PM

$439,900            257 Silo Loop                 Saturday 4/22   12 - 4PM

$449,900            21333 Sutherland Cir      Saturday 4/22    1 - 3PM

$497,000            356 Pecan Avenue           Saturday 4/22    1 - 3PM

$374,900            152 Club Drive                Sunday 4/23       1 - 3PM

$439,900            257 Silo Loop                  Sunday 4/23       2 - 4PM

$485,000            19740 Bunker Loop         Sunday 4/23       2 - 4PM

$497,000            356 Pecan Avenue           Sunday 4/23       2 - 4PM

$499,000            10284 Bay Haven Circle   Sunday 4/23       12 - 3PM

$500,000            11461 County Road 1      Sunday 4/23       2 - 4PM

$599,900            10932 Niblick Loop          Sunday 4/23       11 - 1PM

$1,799,900         249 Burgundy Lane          Sunday 4/23       2 - 4PM

Spanish Fort 

$254,900            6800 Spaniel Drive            Saturday 4/22    2 - 4PM

$349,000            31267 Oakridge Court        Saturday 4/22    2 - 4PM

$424,900            12344 Lone Eagle Dr          Saturday 4/22    2 - 4PM

$469,000            102 General Canby Drive    Saturday 4/22    2 - 4PM

$254,900            6800 Spaniel Drive            Sunday 4/23       2 - 4PM

$300,000            30621 Pinyon Drive           Sunday 4/23       2 - 4PM

$315,000            10631 Brodick Loop           Sunday 4/23       2 - 4PM

$349,000            31267 Oakridge Court        Sunday 4/23       2 - 4PM

$469,000            102 General Canby Drive    Sunday 4/23       2 - 4PM

Condos offer affordable options relative to similarly located single-family homes in most markets

According to a recent report from realtor.com, condo buyers paid roughly 7% less for their home than buyers of other housing types last year. 

Lower Maintenance

Also, condos can be a good option for anyone who wants to keep home maintenance to a minimum . . . if the roof is leaking or the carpet in the lobby needs to be replaced, that’s not your responsibility — the condo association handles those duties.

Owning a condo will help you start building wealth in the form of home equity. In time, the equity you build can fuel a future purchase should you decide you want to buy a home with more space or different amenities.

Here is a list of condo complexes on the Eastern Shore:

• Quail Hollow
  6891 Spaniel Dr, Spanish Fort, AL 36527

• Bay Forest Condos
  500 Grant St, Daphne, AL 36526

• Loma Alta Towers
  100 Tower Dr, Daphne, AL 36526

• Sunset Bay Villas
  4 Yacht Club Dr, Daphne, AL 36526

• Bay Village Condominium
  6 Yacht Club Dr, Daphne, AL 36526

• Golf Terrace Condos
  102 Golf Terrace, Daphne, AL 36526

• Sea Cliff North Condominiums
  1059 Sea Cliff Dr N, Daphne, AL 36526

• St. Charles Village Condos
  25806 Pollard Rd. | Daphne, AL 36532

• The Highlands at Fairhope Village
  Dry Falls Way, Fairhope, AL

• Gayfer Court Condominiums
  314 Gayfer Ct, Fairhope, AL 36532

• Magnolia Beach Townhomes
  710 S Mobile St, Fairhope, AL 36532

• Royale Chateau Condos
  207 S Mobile St, Fairhope, AL 36532

• Bay Winds Condominiums
  210 South Mobile St. | Fairhope, AL 36532

• Colony at the Grand
  901 Geranium Drive, Fairhope, AL 36532

If you’re ready to search condos in our area, let’s connect today:
(251) 709-4558
Michelle Beckham, Broker (Bellator Real Estate)

Football season is finally and fall is already in the air! More and more events begin occuring as the season progresses along Alabama’s Gulf Coast. Check out these September 2022 events in Baldwin and Mobile counties:

Sep 2 (Friday)

Fairhope First Friday Art Walk: 6:00pm - 8:00pm
Eastern Shore Arts Center (& shops all-around downtown Fairhope)

Sep 3 (Saturday)

Labor Day Car Show: 9:00am - 4:00pm

Sep 3 (Sunday)

Labor Day Fireworks: 8:50pm - 9:00pm
Location 101-N S OWA Blvd, Foley, AL 36535

Sep 8-10

Bulls on the Beach
Flora-Bama

Sep 11 (Sunday)

9/11 Memorial Ceremony & Stair Climb Tribute: 8:45am
Gulf Shores Main Public Beach (Gulf Place), then to Island Tower (521 West Beach)
101 Gulf Shores Pkwy. Gulf Shores, AL 36542

Sep 17 (Saturday)

Alabama Coastal Cleanup 8am-12pm
Locations:

• SPANISH FORT: 30945 Five Rivers Boulevard, Spanish Fort, AL 36527
• DAPHNE: May Day Park College Ave, Daphne, AL 3652
• FAIRHOPE: Fairhope Pier, 1 N Beach Rd, Fairhope, AL 36532 Contact Information 251-929-1474

Volunteers who sign up early will receive a free t-shirt. The packets of supplies will be available at the James P. Nix Senior Center (1 Bayou Drive) on Friday, September 16th from 8am to 4pm. All other volunteers can sign in at the Fairhope Pier on Saturday morning at 8am.

Sep 28 – Oct 1

Alabama Coastal BirdFest
5 Rivers Delta Center

September 30 – October 2

Orange Beach Freedom Fest
The Wharf

Mobile, AL Events:

Sep 3 (Saturday)

Nichols @ Univ. South Alabama: 4pm
Hancock Whitney Stadium (Mobile)

Sep 24 (Saturday)

Louisiana Tech @ Univ. South Alabama: 6pm
Hancock Whitney Stadium (Mobile)

Oct 15 (Saturday)

ULM @ Univ. South Alabama (Homecoming Game): 4pm
Hancock Whitney Stadium (Mobile)

Oct 20 (Thursday)

Troy @ Univ. South Alabama: 6:30pm
Hancock Whitney Stadium (Mobile)

Nov 12 (Saturday)

Texas State @ Univ. South Alabama: 4pm
(Hall of Fame / Honor Band / Salute to Heroes)
Hancock Whitney Stadium (Mobile)

Nov 26 (Saturday)

Old Dominion @ Univ. South Alabama: 11am
Hancock Whitney Stadium (Mobile) 

While you may have seen recent stories about the volume of foreclosures today, context is important. During the pandemic, many homeowners were able to pause their mortgage payments using the forbearance program. The goal was to help homeowners financially during the uncertainty created by the health crisis.

When the forbearance program began, many experts were concerned it would result in a wave of foreclosures coming to the market, as there was after the housing crash in 2008. Here’s a look at why the number of foreclosures we’re seeing today is nothing like the last time.

1. There Are Fewer Homeowners in Trouble

Today’s data shows that most homeowners are exiting their forbearance plan either fully caught up on payments or with a plan from the bank that restructured their loan in a way that allowed them to start making payments again. The graph below depicts those findings from the Mortgage Bankers Association (MBA):

The same MBA report mentioned above estimates there are approximately 525,000 homeowners who remain in forbearance today. Thankfully, those people still have the chance to work out a suitable repayment plan with the servicing company that represents their lender.

2. Most Homeowners Have Enough Equity To Sell Their Homes

For those who are exiting the forbearance program without a plan in place, many will have enough equity to sell their homes instead of facing foreclosures. Due to rapidly rising home prices over the last two years, the average homeowner has gained record amounts of equity in their home.

Marina Walsh, CMB, Vice President of Industry Analysis at MBA, says:

“Given the nation’s limited housing inventory and the variety of home retention and foreclosure alternatives on the table across various loan types, . . . Borrowers have more choices today to either stay in their homes or sell without resorting to a foreclosure.”

3. There Have Been Fewer Foreclosures over the Last Two Years

One of the seldom-reported benefits of the forbearance program was it gave homeowners facing difficulties an extra two years to get their finances in order and work out a plan with their lender. That helped prevent the foreclosures that normally would have come to the market had the new forbearance program not been available.

Even as people leave the forbearance program, there are still fewer foreclosures happening today than before the pandemic. That means, while there are more foreclosures now compared to last year (when foreclosures were paused), the number is still well below what the housing market has seen in a more typical year, like 2017-2019 (see graph below):

4. The Current Market Can Easily Absorb New Listings

When the foreclosures in 2008 hit the market, they added to the oversupply of houses that were already for sale. It’s exactly the opposite today. The latest Existing Home Sales Report from the National Association of Realtors (NAR) reveals:

“Total housing inventory at the end of March totaled 950,000 units, up 11.8% from February and down 9.5% from one year ago (1.05 million). Unsold inventory sits at a 2.0-month supply at the present sales pace, up from 1.7 months in February and down from 2.1 months in March 2021.”

A balanced market would have approximately a six-month supply of inventory. At 2.0 months, today’s housing market is severely understocked. Even if one million homes enter the market, there still won’t be enough inventory to meet the current demand.

Bottom Line

If you see headlines about the increasing number of foreclosures today, remember context is important. While it’s true the number of foreclosures is higher now than it was last year, foreclosures are still well below pre-pandemic years.

If you have questions, reach out to a real estate professional who can help explain the latest market conditions and what they mean for you. Call Michelle Beckham Today: (251) 709-4558 (Broker, Bellator's Daphne Office)

When you’re selling any item, you usually want to sell it for the greatest profit possible. That happens when there’s a strong demand and a limited supply for that item. In the real estate market, that time is right now. If you’re thinking of selling your house this year, here are two reasons why now’s the time to list.

1. Demand Is Very Strong This Winter

A recent article in Inman News explains:

“Spring, the hottest time of year for homebuyers and sellers, has started early, according to economists. . . . ‘Home shopping season appears to already be in full swing!’”

And they aren’t the only ones saying buyers are already out in full force. That claim is backed up with data released last week by ShowingTime. The ShowingTime Showing Index tracks the average number of monthly buyer showings on active residential properties, which is a highly reliable leading indicator of current and future trends for buyer demand. The latest index reveals this December was the most active December in five years (see graph below):

As the data indicates, buyers are very active this winter. Last December saw even more showings than December of 2020, which was already a stronger-than-usual winter. And remember – you want to sell something when there’s a strong demand for that item. That time is now.

2. Housing Supply Is Extremely Low

Each month, realtor.com releases data on the number of active residential real estate listings (listings currently for sale). Their most recent report reveals the latest monthly number is the lowest we’ve seen in any January since 2017 (see graph below):

And don’t forget, the best time to sell an item is when there’s a limited supply of it available. This graph clearly shows how extremely low housing supply is today.

Even Though Supply Is at a Historic Low, Home Sales Are at a 15-Year High

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), existing-home sales totaled 6.12 million in 2021 – the highest annual level since 2006. This means the market is hot and homeowners are in a great place to sell now while sales are so strong.

NAR also reports available listings by calculating the current months’ supply of inventory. They explain:

“Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace.”

The current 1.8-months’ supply is the lowest ever reported. Here are the December numbers over the last five years (see graph below):

The ratio of buyers to sellers favors homeowners right now to a greater degree than at any other time in history. Buyer demand is high, and supply is low. That gives sellers like you an incredible opportunity.

Bottom Line

If you agree the best time to sell anything is when demand is high and supply is low, let’s connect to begin discussing the process of listing your house today.

For a full list of available homes for sale in Baldwin County, contact Daphne Agents, Fairhope Realtors, and Spanish Fort Agents, with The Beckham Partners Team! (Bellator Real Estate):

#1 Top Producer 2006 - 2019 and #1 Sales Team, 2020!

For more info, call us today:

• Michelle Beckham (251) 709-4558 (Broker)
• Angelina Needham (251) 979-2108 
• Jennifer Doyle (251) 404-3228
• Mike Hamm (251) 214-8237

Bellator Real Estate

A recent survey revealed that many consumers believe there’s a housing bubble beginning to form. That feeling is understandable, as year-over-year home price appreciation is still in the double digits. However, this market is very different than it was during the housing crash 15 years ago. Here are four key reasons why today is nothing like the last time.

1. Houses Are Not Unaffordable Like They Were During the Housing Boom

The affordability formula has three components: the price of the home, wages earned by the purchaser, and the mortgage rate available at the time. Conventional lending standards say a purchaser should not spend more than 28% of their gross income on their mortgage payment.

Fifteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased, and the mortgage rate, even after the recent spike, is still well below 6%. That means the average purchaser today pays less of their monthly income toward their mortgage payment than they did back then.

In the latest Affordability Report by ATTOM Data, Chief Product Officer Todd Teta addresses that exact point:

“The average wage earner can still afford the typical home across the U.S., but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward.”

Affordability isn’t as strong as it was last year, but it’s much better than it was during the boom. Here’s a chart showing that difference:

If costs were so prohibitive, how did so many homes sell during the housing boom?

2. Mortgage Standards Were Much More Relaxed During the Boom

During the housing bubble, it was much easier to get a mortgage than it is today. As an example, let’s review the number of mortgages granted to purchasers with credit scores under 620. According to credit.org, a credit score between 550-619 is considered poor. In defining those with a score below 620, they explain:

“Credit agencies consider consumers with credit delinquencies, account rejections, and little credit history as subprime borrowers due to their high credit risk.”

Buyers can still qualify for a mortgage with a credit score that low, but they’re considered riskier borrowers. Here’s a graph showing the mortgage volume issued to purchasers with a credit score less than 620 during the housing boom, and the subsequent volume in the 14 years since.

Mortgage standards are nothing like they were the last time. Purchasers that acquired a mortgage over the last decade are much more qualified. Let’s take a look at what that means going forward.

3. The Foreclosure Situation Is Nothing Like It Was During the Crash

The most obvious difference is the number of homeowners that were facing foreclosure after the housing bubble burst. The Federal Reserve issues a report showing the number of consumers with a new foreclosure notice. Here are the numbers during the crash compared to today:

There’s no doubt the 2020 and 2021 numbers are impacted by the forbearance program, which was created to help homeowners facing uncertainty during the pandemic. However, there are fewer than 800,000 homeowners left in the program today, and most of those will be able to work out a repayment plan with their banks.

Rick Sharga, Executive Vice President of RealtyTrac, explains:

“The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging. It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect.”

Why are there so few foreclosures now? Today, homeowners are equity rich, not tapped out.

In the run-up to the housing bubble, some homeowners were using their homes as personal ATM machines. Many immediately withdrew their equity once it built up. When home values began to fall, some homeowners found themselves in a negative equity situation where the amount they owed on their mortgage was greater than the value of their home. Some of those households decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of other homes in the area.

Homeowners, however, have learned their lessons. Prices have risen nicely over the last few years, leading to over 40% of homes in the country having more than 50% equity. But owners have not been tapping into it like the last time, as evidenced by the fact that national tappable equity has increased to a record $9.9 trillion. With the average home equity now standing at $300,000, what happened last time won’t happen today.

As the latest Homeowner Equity Insights report from CoreLogic explains:

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”

There will be nowhere near the same number of foreclosures as we saw during the crash. So, what does that mean for the housing market?

4. We Don’t Have a Surplus of Homes on the Market – We Have a Shortage

The supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued price appreciation. As the next graph shows, there were too many homes for sale from 2007 to 2010 (many of which were short sales and foreclosures), and that caused prices to tumble. Today, there’s a shortage of inventory, which is causing the acceleration in home values to continue.

Inventory is nothing like the last time. Prices are rising because there’s a healthy demand for homeownership at the same time there’s a shortage of homes for sale.

Bottom Line

If you’re worried that we’re making the same mistakes that led to the housing crash, the graphs above show data and insights to help alleviate your concerns.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Alabama’s Gulf Coast contains several real estate markets depending on location and price point – just to name a few factors. The graphic below shows real estate statistics for June 2021, the latest month available.

Residential Units only, as of June 6, 2021:

* Sold Units are from previous month

EASTERN SHORE:

Daphne, AL:  Units SOLD: 158, Currently LISTED: 79 (84% Listed are Under$500k)

Fairhope, AL: Units SOLD: 131, Currently LISTED: 127 (66% Listed are under $500k)

Spanish Fort, AL: Units SOLD: 66, Currently LISTED: 32  (69% Listed are under $500k)

SOUTH BALDWIN:

Foley, AL: Units SOLD: 180, Currently LISTED: 79 (98% Listed are under $500k)

Gulf Shores, AL: Units SOLD: 208, Currently LISTED: 260 (78% Listed are under $500k)

Orange Beach, AL: Units SOLD: 145, Currently LISTED: 195 (50% Listed are under $500k)

Vital Signs provides a visual representation of what’s happening in several local markets by showing you supply. The colored-coded numbers represent the absorption rate, the number of months it would take to sell every home on the market in a particular price range if no others were added. If the market is moving quickly, the absorption rate will fall below six months of supply, and if it’s more of a buyer’s market, it will jump above six months of supply. 

The rate is determined by dividing the number of units currently on the market by the number sold in the past month. As you can see, we are seeing a less than six moth supply in most markets across the Gulf Coast, marking a historic seller’s market for our area. For updated information for your specific neighborhood, contact your Bellator agent today.

Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their financial stability and well-being grow to record levels.

In more good news for homeowners, the most recent Home Price Expectations Survey – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists – forecasts home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year. Below are the expected year-over-year rates of home price appreciation from the report:

What Does This Mean for Homeowners?

Home prices are climbing today, and the data in the survey indicates they’ll continue to increase, but at rates that approach a more normal pace. Even still, the amount of household wealth a homeowner stands to earn going forward is substantial. This truly becomes clear when we consider a scenario using a median-priced home purchased in January of 2021 and the projected rate of appreciation on that home over the next five years. As the graph below illustrates, a homeowner could increase their net worth by a significant amount – over $93,000 dollars by 2026.

Home Price Appreciation and Home Equity

CoreLogic recently released their quarterly Homeowner Equity Insights Report, which tracks the year-over-year increases in equity. It shows an average annual gain of $33,400 per borrower over the past 12 months. In the report, Dr. Frank Nothaft, Chief Economist for CoreLogic, further explains:

“Double-digit home price growth in the past year has bolstered home equity to a record amount. The national CoreLogic Home Price Index recorded an 11.4% rise in the year through March 2021, leading to a $216,000 increase in the average amount of equity held by homeowners with a mortgage.”

The expected, sustained growth of home prices means homeowners can continue to build on the past year’s record levels of home equity – and their financial prosperity. It also presents today’s homeowners with a unique opportunity: using their growing equity for a home upgrade. With so few homes available to purchase and strong buyer demand, there may not be a better time to sell your current house and move into one that better meets your needs.

Bottom Line

Home prices are expected to continue appreciating over the next five years, and the associated equity gains are the quickest way homeowners can build household wealth. If you’re a current homeowner who’s ready to take advantage of your built-up equity, let’s connect today to discuss your options.