December 2013

ACRE Reports "Sales Hit Six-Year High"

Alabama residential sales during the third quarter continued to gradually improve, up 13.4 percent compared to the same period a year earlier. Total sales of 12,068 units represent the best third quarter since 2008 (11,758 units). To put in perspective, third quarter sales peaked in 2005 when 16,674 units were sold. 

Supply: 
The statewide housing inventory average during the third quarter was 33,847 units, a decrease of 10.9 percent from the same period in 2012 and 16.9 percent below the third quarter peak in 2010 (40,745 units). There was 8.4 months of housing supply in the third quarter 2013 versus 9.6 months of supply last year, a solid decline of 11.9 percent. Historical data indicates that the third quarter inventory-to-sales ratio in 2013 decreased 23.6 percent from the 5-year average and decreased 25.7 percent from the 3-year average. In contrast to reports of lack of inventory at the national level, Alabama still has an ample supply in most local markets. In October, only 8 of 25 or 32 percent of local markets have single-digit months of housing supply so this is an area where more reduction would be welcome news. With that said, metro markets, representing 70 percent of statewide transactions, are edging closer to equilibrium with 8.5 months of supply.

Demand: 
Historical data indicates that third quarter sales in 2013 increased by 20.8 percent from the most recent 3-year average ('10-'12) and 15.2 percent from the 5-year quarterly average ('08-'12). 

Pricing: 
The statewide median selling price during the third quarter was $128,026, an increase of 1.5 percent from the same quarter in 2012. Historical data indicates that third quarter median price in 2013 increased by 3.3 percent from the most recent 3-year average and .4 percent from the 5-year quarterly average ('08-'12).

Click here to view or print the full report 
MULTIFAMILY NEWS

 

Save the Date: 2014 Multifamily Workshop Planned for February 18

 

AHFA's annual application training is scheduled for Tuesday, February 18 in Montgomery. This year's event will be held in conjunction with the Alabama's Better Living Expo hosted by the Homebuilders Association of Alabama. Anyone interested in applying for 2014 HOME funds or Housing Credits should make plans to attend.

Watch your email or check AHFA.com for more information in the near future.

 

 

 
SINGLE FAMILY NEWS
New Rule Requiring Banks To Make Sure Borrowers Can Actually Repay Mortgages Goes Into Effect This Week 

On January 10, 2014, the Consumer Financial Protection Bureau's Ability-to-Repay Rule will go into effect. This rule protects consumers from debt traps by requiring mortgage lenders to evaluate whether borrowers can afford to pay back the mortgage before signing them up. The rule was required by Congress, as a response to the financial crisis and nationwide foreclosure epidemic.
 

AHFA Offices to Close for January Holiday

 

The AHFA offices will be closed Monday, January 20 in observance of the Martin Luther King Jrr./Robert E. Lee holiday. Please make a note of these date.