We all know 2020 was a difficult year. The housing market, like many other industries, was hit hard by the uncertainty resulting from COVID-19.
As our world learns to function during a pandemic and we collectively work our way to recovery, real estate is also working its way to stability.
Foreclosures in Alabama
Alabama has one of the highest numbers of foreclosures in the nation, despite the governor’s efforts to provide temporary relief from foreclosure during COVID-19. Though many people are losing their homes to foreclosure, there are buyers around every turn. Realtors report that even foreclosed homes are flying off the market at record speed.
Low-Interest Rates
One news agency reported that in October 2020, the housing market in the Yellowhammer State was “shattering expectations.” The reason for the rising demand on homes? Low-interest rates. It’s common for home sales to drop significantly during the winter months, but interest rates remain low and home sales are staying high.
Many home buyers are looking into real estate investing while the interest rates remain low. They might already own a home, but are looking into purchasing rental properties or second homes. Opportunist buyers are looking for any chance to take advantage of low rates while they still can.
Home Prices Are Skyrocketing
Home prices in Alabama have been steadily rising, and are predicted to continue rising through 2021. Over the last year, home values have risen 8.2%. While high home prices aren’t ideal for buyers, they certainly aren’t discouraging them enough to keep them from taking advantage of the low-interest rates.
Rising home values are great for sellers. Homes are in high demand. Buyers are out actively looking for homes, but many people are hesitant to sell because of the pandemic. There’s so much uncertainty right now, it doesn’t seem like the ideal time to sell a house and move. This means inventory is low.
Supply and Demand
Supply and demand is a principle of economics that examines the relationship between the quantity of an item for sale (in this case, homes) and the quantity that consumers want to buy. This principle has a large impact on price. When supply is low, price and demand are typically high. If supply is high, price and demand often go down.
Following this principle for the housing market in Alabama, a low supply of homes that are in high demand means more competition. More offers on houses. And ultimately, this leads to higher selling prices for homes.
Local Home Buyers Will Buy Your Home
If you’re considering selling your home, now is the time. Even in this ideal housing market, however, selling a home brings a lot of stress and pressure. It doesn’t have to be that way! Local Home Buyers will buy your home as-is. No need to hire a realtor, make any repairs, or pay expensive fees. Just tell us a little bit about your home, and if you qualify, we’ll make you a cash offer in a few days. It really is that easy. We buy homes in Huntsville, Alabama, and the surrounding areas. Give us a call today!