The Alabama Center for Real Estate (of The University of Alabama) released it’s monthly housing report for August 2008. For the state, we saw a modest price increase of 3.34% from $163,119 to $168,572. However, sales slowed state wide including in the Huntsville area. There were 789 homes purchased in Huntsville in August 2008 versus 983 homes purchased a year ago. The average days on the market state wide increased 15 days from 116 to 131 days. The largest concern came from increased monthly supply from 7.7 months to 10.5 months.
The Huntsville market is seeing an increase in supply, particularly in the $400K + range. Future supply could decrease with continued economic expansion, BRAC transferees, and a decrease in the supply of builders in the area.
This is a great move up market. I am seeing a lot of individuals take advantage of this market. I personally helped 8 clients find new Woodland Homes last month in October. There were 4 new home owners in Walden Preserve and 4 new home owners in Foxfield, the two areas in which I am the on-site realtor. I attribute this activity to homes being priced below the market. This is an incredible opportunity to take advantage of market conditions to find the home of your dreams for a price that one could only dream about months ago. Move up buyers can take advantage of this market by pricing their home competitively to gain a tremendous amount of equity in a larger home. My resell business is experiencing similiar results. Home owners who are serious about pricing their competitively are seeing quick sales. Over the last couple of months, I have had 3 homes sell for list price or above. This week, I had a listing bring in 3 offers in 1 day (2 of the offers were list price or above).
Favorable Prices + Favorable Interest Rates = A Once in a Lifetime Opportunity to Purchase the Home of your Dreams. And if you’re not convinced on the tremendous affect that interest rates have on a home purchase, I have a homework assignment for you. Calculate the payments for a $400,000 home at 6% for 30 years. Now let’s assume, this home decreases in value 5% and rates go up .5% to 6.5%. Now decrease the home value to $360,000 and increase rates 1% to 7%. What is the monthly payment on 30 years for these 3 scenarios? I’ll give you a hint, they’re all within a few dollars (literally) of each other. Here’s a finance calculator for your convenience: http://www.mattcurtisrealestate.com/r_mortgage-calculator_loan.asp
Call me today to find out more information and to begin your dream home search: Matt Curtis 256.990.7564.
