Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

July 21, 2021

New! June 2021 Alabama Gulf Coast real estate market statistics by area

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)

2021 Baldwin County Alabama Home Sales Statistics

 

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.

Posted in Market Updates
July 7, 2021

A Look at Home Price Appreciation Through 2025

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:

Home price appreciation

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.

 

Posted in Market Updates
Feb. 3, 2021

Want to Build Wealth? Recent Studies Say "Buy a Home This Year!"

Every year, families, couples, and individuals across U.S. make the decision to rent for another year or take the leap into homeownership. Looking at their earnings and savings to then decide what makes the most financial sense. That equation will most likely take into consideration factors such as monthly housing costs, tax advantages, and other incremental expenses. Using these measurements, recent studies show that it’s still more affordable to own than rent!

There is, however, another financial advantage to owning a home that’s often forgotten in the analysis – the WEALTH BUILT through equity as a primary advantage of owning a home.

“Once you include the equity benefit of price appreciation, owning made more financial sense than renting in 48/50 top markets (with the only exceptions being San Francisco and San Jose, Calif.)”

What has this equity piece meant to homeowners in the past?

ATTOM Data Solutions, the curator of one of the nation’s premier property databases, just analyzed the typical home-price gain owners nationwide enjoyed when they sold their homes. Here’s a breakdown of their findings:

Odeta Kushi, Deputy Chief Economist for First American, discusses this point in a recent blog post. She explains:

“Once you include the equity benefit of price appreciation, owning made more financial sense than renting in 48 out of the 50 top markets, with the only exceptions being San Francisco and San Jose, Calif.”

What has this equity piece meant to homeowners in the past?

ATTOM Data Solutions, the curator of one of the nation’s premier property databases, just analyzed the typical home-price gain owners nationwide enjoyed when they sold their homes. Here’s a breakdown of their findings:

The typical gain in the sale of the home (equity) has increased significantly over the last five years (up from $53,700 in 2019 and $48,500 two years ago). "Both raw profits and ROI have improved nationwide for nine straight years. And last year’s gain in ROI – up more than five percentage points – marked the largest annual increase since 2017", according to that ATTOM report.

CoreLogic, another property data curator, also weighed in on the subject. According to their latest Homeowner Equity Insights Report, the average homeowner gained $17,000 in equity in just the last year alone.

What does the future look like for homeowners when it comes to equity?

Here are the seven major home price appreciation forecasts for 2021:

 

The National Association of Realtors (NAR) just reported that today, the median-priced home in the country sells for $309,800. If homes appreciate by 5% this year (the average of the forecasts), the homeowner will increase their wealth by $15,490 in 2021 through increased equity.

 

Bottom Line

As you make your plans for the coming year, be sure to consider the equity benefits of home price appreciation as you weigh the financial advantages of buying over renting.

When you do, you may find this is the perfect time to jump into homeownership.

Posted in Market Updates
Jan. 25, 2021

Why Moving to Daphne, Fairhope or Spanish Fort May Be Just the Boost You Need

Are you considering moving to Baldwin County's Eastern Shore, for a change of scenery in 2021? Well, we've got just the thing to help you get started - check out our three city home searches, showing every home that's available today - it can even show you what's under contract and what recently sold in any Daphne, Fairhope and/or Spanish Fort neighborhood you're seeking! Also, fee free to call Broker, Michelle Beckham, today with any other questions: (251) 709-4558. No obligation, we're always here to help.

Baldwin County AL Home Search

As we look back over the past year, we’ve certainly lived through one of the most stressful periods in recent history. After spending so much more time at home throughout the health crisis, some of us are wondering if they should move to improve their mental health and well-being. Baldwin county is already the fastest growing county in the state. And, with residents are moving here in 2021 for myriad reasons. Also, Mobilians are moving across the bay to the more scenic cities of Baldwin County - Spanish Fort, Daphne, and Fairhope - all waterfront cities that are also closer to South Baldwin's beaches. Seeking to move for a break is no surprise since the U.S. Census Bureau reported an increase in the percentage of adults with symptoms of anxiety and depression in a recent Household Pulse Survey.

Baldwin County AL Home Search

There’s logic behind the idea that making a move could improve someone’s quality of life. When people change their scenery, they often feel happier. Catherine Hartley, an Assistant Professor at New York University’s Department of Psychology and co-author of a study  on how new experiences impact happiness, mentioned:

“Our results suggest that people feel happier when they have more variety in their daily routines—when they go to novel places and have a wider array of experiences.”

If you’re looking for a new experience, planning a move into a new home may be something you’ve started to consider more carefully. If so, you’re not alone. The 2020 Annual National Movers Study by United Van Lines shows:

“For customers who cited COVID-19 as an influence on their move in 2020, the top reasons associated with COVID-19 were concerns for personal and family health and wellbeing (60%); desires to be closer to family (59%); 57% moved due to changes in employment status or work arrangement (including the ability to work remotely); and 53% desired a lifestyle change or improvement of quality of life.”

So, if you’re thinking of moving this year to help boost your happiness factor, here are a few questions to ask yourself as you make your decision.

How’s the Weather?
Is the weather something that’s important to you? Does it have a tendency to impact your mood? The World Population Review shares:

“What states have the best weather? When evaluating each state for temperature, rain, and sun, some states stand out. Although climate and weather preferences are personal and subjective, some criteria are considered to make up the best weather, according to Current Results:

  • Comfortable temperatures from 63°F to 86°F for more than half of the year.
  • Dry weather with no more than 60 inches of rain per year.
  • Mostly clear skies with an average of sunshine for at least 60% of the year.”

“Better weather” can mean different things to different people – some prefer the heat, others cooler temperatures, and some want to experience all four seasons. Think about what makes you feel happiest if you’re looking for a new location.

Should I Choose the City, Suburbs, or Country?
With the COVID-19 pandemic, some people are deciding to move to lower-density areas. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), mentions:

“The third quarter Home Building Geography Index (HBGI) reveals that a suburban shift for consumer home buying preferences in the wake of the COVID-19 pandemic is accelerating as telecommuting is providing consumers more flexibility to live further out within large metros or even to relocate to more affordable, smaller metro areas.”

Can you work from home? Are you open to a longer commute in the future? If so, a move to the suburbs or even a quieter rural area may be a win for you. Or, if you’ve always dreamed of life in the city, now may be your chance to move into town.

Bottom Line
As we look beyond the trials of the pandemic, many are hoping for a new beginning, and that may mean moving. Let’s connect today to talk about your new goals and options in today’s market.

Posted in Market Updates
July 31, 2017

Curious About Local Real Estate?

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Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

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You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates