With summer behind us, here’s a look at home sales trends in the Alabaster, Maylene and Saginaw areas (stats from the Birmingham MLS):

After taking a dip in June, average sales prices are holding fairly steady:

How long does it take to get a home sold in these areas? According to the MLS, the time needed is just a little over two months (the shortest it has been all year):

Right now, 354 conventional single family houses and townhomes are for sale in the Alabaster, Maylene and Saginaw areas. Of those:

289 are priced at or below $250,000;
127 are priced at or below $150,000;
22 are priced at or below $100,000;
338 have 3 or more bedrooms;
170 have 4 or more bedrooms;
29 have 5 or more bedrooms;
113 have pools or access to pools;
5 have 4 or more acres…

Need a loan to buy? Rates right now continue to be among the lowest in history. Qualified borrowers can get a 30-year fixed rate loan for as low as around 4.25%; 15-year fixed rate loans can be found by some borrowers as low as 3.75%. Colleen and I have been able to help a number of first time Buyers say ‘adios’ to renting and move into their first homes with some excellent loans at very low rates.

Needless to say, this continues to be a tremendous time to buy a home … let us know if we can help!

David

Yet another indicator that the super low interest rates Buyers have been enjoying in the Shelby Co. and Birmingham real estate market may be coming to an end:

Click here to see an article in the 4/11/10 New York Times advising that rising interest rates are inevitable.

If you’ve been considering buying a home and have been waiting for the perfect time, it looks more and more as if the perfect time is about to pass you by.

It’s all the more reason to get serious, and soon!

David

If you’ve been thinking of buying a home in the Birmingham/Shelby Co. area using the popular USDA loan program which allows you to buy with no down payment, you may be fast running out of luck.

USDA says the program is projected to run out of money by the end of April, and no new funding is currently anticipated.

In Shelby County, USDA loans have been responsible for many people buying homes in areas like Calera and Montevallo, as well as across many other parts of Alabama.

Because USDA loans are so attractive to many buyers—mortgage insurance isn’t required, either—they have often meant the difference between whether a Buyer is able to purchase property.

Carmell Cantrell is a Loan Officer with First Federal Mortgage in Birmingham, and has been following what may be the demise of the program she and other Lenders have worked with extensively over the years.

USDA loans could be revived if Congress acts, but whether that will happen remains unknown. If the program does, in fact, end, it will stand as a major point in real estate sales history, signaling the end of the so-called easy credit era.

Click the player below to listen to our interview with Carmell now…

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…or click here if you’d like to download and listen on your personal listening device.

So … what to do if you’ve been thinking of buying a home using USDA loan program?

Experts have two words to suggest: Start saving.

David

If Sellers sometimes have an unrealistic idea of what a Buyer is willing to pay, Tom Horn brings them back to reality.

Tom is an appraiser in the Birmingham and Shelby Co. area, and owns appraisal-source.com, a company Lenders and homeowners trying to sell on their own rely upon for accurate residential market appraisals.

Colleen and I caught up with Tom and got his analysis of what’s happening with home values in the Shelby Co. and Birmingham areas. We found out pretty quickly that talking with Tom is very interesting!

From everything we learned about home price trends in the area, as well as the negative effects on home sales prices caused by government-mandated changes in the way appraisers are selected, we knew we needed Tom to share his expertise with us.

We’ve divided our interview with Tom into two segments. Click the players just below to listen to Parts 1 and 2.

Tom Horn Interview Part 1:

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Tom Horn Interview Part 2:

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…or, if you’d like to listen by downloading to your portable device:

Click here to download Part 1 (10 Mb).

Click here to download Part 2 (7 Mb).

Links to Thomas Horn’s websites:

Click for Appraisal-source website

Click for Tom’s Appraisal Blog

We hope you enjoy … and thanks, Tom, for the great information!

David Black

Ever wished for a crystal ball so you’d know what’s ahead? That might, or might not, be a good thing, depending on what you want to know…!

On the one hand, having a crystal ball to look into the real estate market could sure help ease concerns for some folks here in the Birmingham and Shelby county areas. Or would it?

Suppose you’re thinking of selling your home. Would you be more inclined to sell sooner, if, say, the ball suggested values would continue to slide in 2010? What if the ball suggested you’d get more if you wait?

I don’t think we really need a crystal ball to know that home values will rise. Nearly every expert out there predicts they will, at some point.

It’s those last three words that are the kicker: At some point.

Hmm. Does that mean in the next three months? Ten months? Two years? This is where having a crystal ball would be pretty handy.

However, crystal balls are about as plentiful as bumper stickers in Alabama supporting the Texas Longhorns. People ask us questions frequently that would pretty much need a crystal ball to answer accurately. “What is my home going to be worth in a year?” would be one such question.

“What will my home sell for if I list it right now?”

Ahh. There’s a question that doesn’t need a crystal ball as badly to answer. We have good resources we can draw upon to come up with a figure that—more times than not—winds up being very close to actual selling price.

The fact is that if your home ’shows nicely’ as Agents like to say, and is priced where we know Buyers will bite, your odds of selling are promising. And, yes, that’s true even in the tough market affecting so many neighborhoods in the Birmingham and Shelby Co. areas as we plow into 2010.

This might sound ridiculously obvious to some, but the ’shows nicely, priced right’ concept is one we’ve seen trip up a lot of people trying to sell their homes. So, not everyone really understands how important this really is. Or put another way, not everyone really ‘gets it.’

During 2009, we represented Sellers who agreed to price their homes where we suggested. Granted, they weren’t always thrilled with the price we recommended. But they swallowed hard and said, ‘okay.’ Why? Because they needed to sell. Helping ease this frustration was their knowledge that—when they turned around to buy another home—they’d be enjoying the opposite side of the tough selling market, getting a very good deal on the home they’re buying.

We also dealt with Sellers in 2009 who disagreed with us. They felt they had a better idea than we did of what their home would would sell for. And guess what happened with their efforts to sell? Nothing. Zilch. Their homes didn’t sell, despite being on the market plenty long enough to sell. I remember several cases where other homes in the same neighborhood as our Clients’ house sold, and in the general price range we had recommended.

There were some cases where our Client’s home never even got an Offer. We always talk about how important it is to listen to what the market is telling us. Let me assure you of one thing: If a home for sale doesn’t even get an Offer, that’s the market talking. It may even be shouting.

I know one thing for sure about trying to get a home sold in this market. You either have to ‘get it,’ or you have to trust your Agent’s advice. Otherwise, your home is probably not destined to sell.

I think the real question that emerges is: How badly do you want, or need, to sell?

Clearly, there are many situations for folks where—regardless of how the market may be performing at the moment—it’s important to sell sooner, rather than later. Some Sellers who contact us tell us they need to sell as fast as possible, and are waiting for us to tell them what to do to make it so.

These are the people we feel confident we can help.

And no, we don’t have a crystal ball to predict the outcome.

But listening to the market and to your Agent go a long way right now, and will most likely mean you can start packing sooner, rather than later.

David

I asked a group of Realtors who sell homes in the Birmingham and Shelby Co. area recently what their thoughts are of 2009, now that it’s ‘in the rear view mirror.’

While a few Agents reported a strong year last year, most told me they weren’t sad to see ‘09 become history.

We hear conflicting information in the media a lot these days about home sales, and this can even happen when you’re looking at sales in a small, targeted area.

Here are a few statistics from the Birmingham MLS that show trends in 2009, compared to 2007 and 2008. Clearly, the local market was a difficult one for many:

Here’s a look at average sold prices for homes in the area:

And, finally, how long did it take to get a home sold? Here’s a look at that:

While these numbers show a challenging market, people with a lot of years in the real estate business under their belt continue to believe that the market will undergo a gradual change, back to more balanced conditions.

No one knows exactly when that will happen, or how quickly it will occur, but most are confident it will. Some think it’s already starting.

Perhaps 2010 will be the year…

David

Here are a few news tidbits involving home sales:

…Sales in the Birmingham area shot up 46% in November, marking the second straight month of increases over the previous year, according to the Birmingham Association of Realtors. In November, 879 homes sold, compared to 603 in November, 2008;

…November sales of previously occupied homes surged to their highest point nationwide in nearly three years, according to the National Association of Realtors;

…Lawrence Yun, NAR’s Chief economist, sees continued progress in 2010, even as some of the government’s efforts to stimulate the housing market ease. “We expect a temporary sales drop [before] another surge in the spring when buyers take advantage of the expanded tax credit,” Yun said. That “hopefully will take us into a self-sustaining market in the second half of 2010.”

…Roughly 2 million homebuyers have taken advantage of the $8,000 First Time Buyer’s Tax Credit, according to NAR estimates;

…Sales of new homes, however, dropped 11% in November, their lowest level since April (new home sales represent a dwindling share of the market). Bottom line: If you’re looking for a new home, chances are you’ll find builders extremely anxious to work a deal;

Overall, analysts feel the housing market continues to recover from its recent downturn, with the government’s assistance programs getting much of the credit.

If you’re thinking of buying a home in the Birmingham and Shelby Co. area, the market remains very much in your favor, thanks to a large selection of homes to choose from, motivated Sellers, and a continuation of some of the lowest ever interest rates on loans.

Last, but certainly not least, keep in mind that the First Time Buyer’s Tax Credit, originally set to expire November 30, 2009, has been extended to April 30, 2010. The government has also expanded the program to provide incentives for current homeowners who relocate — click here for details.

David

Congress has taken a step many people were watching for, and has extended the $8,000 tax credit for people buying a home for the first time. But the extension also carries a big change that could affect you if you own a home right now and want to buy again.

The credit, which was originally set to expire November 30th, now applies to Sales Contracts in place by April 30th, 2010. Homeowners have an additional 60 days beyond then to actually close the sale.

If you currently own your home and have lived in it for five consecutive years, the extension provides for a $6,500 credit if you buy another property by the new deadline. In the current market where so many homes have lost value, this may help Sellers frustrated over not being able to get an Offer for as much as they’ve wanted.

So … either way, the extension is intended to make buying a home more enticing to a larger group of people. That’s exactly why Congress passed the bill, in a continuing desire to stimulate the housing market.

Another point many buyers are not aware of is the fact that you can still qualify for the credit even if you owned a home previously. The government defines a first time buyer as someone who has not owned a home during the previous three years. So, if you owned a home in, say, 2004, but have not owned your residence since then, you would qualify for the first time buyer’s credit.

The tax credit’s extension and expansion, coupled with such affordable deals and financing on homes in the Birmingham and Shelby Co. area really do suggest that—unless you plan to move again soon—you’re much better off owning, rather than renting, and—if you qualify as an existing owner and have been wanting to move—now’s the time.

David

Getting your home sold in Shelby County is taking longer in some communities and less time in others, while prices have dropped, according to October statistics from the Birmingham Multiple Listing System.

The average number of days on market increased in Alabaster and Chelsea, but fell in Helena, Pelham and Calera:

Click here to see a larger version of the Average Days On Market graphic…

Prices continued a downward trend in October, and substantially so, compared to September:

Click here to see a larger version of the Average Sales Price graphic…

How many homes are selling?

Except for Calera, the number of homes sold in October dropped from September. Chelsea saw the sharpest one month drop, while more homes sold in Calera during October than in September:

Click here to see a larger version of the Number of Homes Sold graphic…

Why the uptick in Calera?

Perhaps it’s the large inventory of low cost housing (both new and resale), making for some very attractive deals for first time home buyers, along with the fact that Calera qualifies for USDA financing (which means loans with no down payment required).

I think these statistics are giving us some important messages.

If you’re planning on buying a home, the market is continuing to work very much in your favor in the Birmingham and Shelby County area. Prices have dropped, inventory is in plentiful supply, and loans continue to be very affordable.

If you’re trying to sell, the message these numbers present is that it’s going to take a lot more than just putting a For Sale sign in the yard.

Marketing plays a more critical role than ever, and must be done in innovative ways if your home is to stand out among all the other properties for sale.

Pricing is no less important and will be a huge deciding factor in how quickly you sell, or if you sell, at all (believe me, we have seen examples of both!).

You may also benefit from an informed assessment of your property’s appearance and condition. With so many homes for sale right now, if your property doesn’t sparkle, Buyers will simply move on to another.

These are some very good reasons for trusting the sale of your home to an Agent who’s knowledgeable about the market here in the Shelby Co./Birmingham area and who knows how to achieve success in spite of challenging economic conditions.

David

It’s always interesting to take a look at what’s happening in the real estate market here in the Birmingham and Shelby County area.

Here’s a quick look at market numbers for the Alabaster, Maylene and Saginaw areas, as of 10/25:

Total Homes for Sale:  355

Homes priced from $149,999 or under:  127
Homes priced from $150k-$199,999:  101
Homes priced from $200k-$249,999:  50
Homes priced from $250k-$299,999:  36
Homes priced from $300k-$349,999:  17
Homes priced from $350k-$399,999:  9
Homes priced from $400k-$449,999: 3
Homes priced from $450k-$499,999: 1
Homes priced at $500k or above: 11

Of the homes priced between $150k and $199,999:

-  27 have a full basement;
- 33 have a partial or finished basement;
- 19 have a Master Bedroom on main level;
-  26 are at least one side brick;
-  16 are four sides brick;
-  100 have at least 2 baths;
-  52 have 3 or more baths

Interest rates remain low, lots of Sellers are anxious to work deals, and time is running short if you’re wanting to take advantage of the First Time Home Buyer’s Tax Credit…

David

Source: Birmingham Multiple Listing System