There’s good news for both home buyers and sellers alike- reports show that the market is looking up! That's good news for anyone who fell in love with Truland Homes during the Spring Tour of Homes last weekend!
Moving further into 2017, owning a home continues to be more affordable than renting in most states nationwide. Over the course of 2016, home purchases are up, foreclosure movement is down and a strong economy has people re entering the real estate market. When deciding whether to buy, rent or move the majority of folks tend to consider very carefully the location and timing of their potential large purchase. To focus on the patterns of the U.S. housing market, 24/7 Wall St. reviewed rental and homeownership affordability stats in more than 500 counties nationwide based on first, a comparison of regional monthly home payments and also on rent payments to average monthly wages. You can find 24/7 Wall St.’s full review here. The most affordable housing markets, aren’t necessarily located in the most desireable areas. There are some places where real estate is noticeably more affordable than other areas, and an increased demand is another factor which can drive housing prices up.
24/7 Wall St. recently used data on rental costs and home prices to determine the 25 most affordable housing markets nationwide. Instead of being determined solely by price, the site creates a comparison between home payments and rent payments to average monthly incomes. Two of the 25 locations on this list are in our very own, Alabama! Montgomery, Alabama came in at place 11, with average monthly wages at $3,614; and average home ownership costs are almost 14% of total monthly wages. In turn, rent equals almost 31% of average monthly wages. Madison, Alabama came in at place 9, with average monthly wages are $4,550; and average home ownership costs are about 19% of their total monthly wages, and 24% on rent. The most affordable location on the list was Greene County, Tennessee. There, monthly wages are $3,055; average home ownership costs are about 15% of monthly wages, and in turn rent is about 30%.
Zillow is a website which collects housing market data and thus reviews home prices and home values. According to Zillow, the median home value in Alabama is $125, 200, theorizing that home values have increased by 2.8% over the 2016 year. The median list price per square foot is $92; the median price of homes currently listed is $174,900; and the median rent price is $995 per month. However, Zillow says that something to keep in mind is that foreclosures will be a factor impacting home values in the next several years. In Alabama, an average of 2.1 (per 10,000) homes are foreclosed upon, this is greater than the national average of 1.5 (per 10,000) homes. However, the news is still good! Zillow predicts an additional 2.3% increase in home value during the 2017 year, based on their statistics.
According to the Bellator Market Update total residential sales in Baldwin County alone climbed 6.5%, and the median sales price ascended 3.7%. Mobile, unfortunately, saw permits decline by a 0.9% decrease, but the total residential sales were improved by 4.3% despite a fall in the median sales price of 2.9%. Bellator Market Update also offers several charts and graphs to depict the housing market over the years for a more visual representation of our current market.
All in all, reports show that now is a great time to purchase or sell a home! If you would like to speak further with one of our experts regarding purchasing your very own Truland home, please contact us at your convenience!