Home prices soared 12.1 percent across the country. This is the largest increase since 2006. However, Alabama is one of two states seeing prices slump—but, there’s reason.
“One reason I think in Dothan is, we used to sell more houses over $400,000 and up to the $1.2 million and we're not selling those like we used to,” said James Grant from Century 21 and James Grant Realty.
Another reason is Alabama’s foreclosure inventory. They weigh down the state’s average home price.
“That makes a huge difference because those foreclosures are going for much less than they ought to go,” said Grant.
Others believe it is our surge in general inventory that made prices slip. There are more sellers than buyers, and the competitive tables have turned.
“We have about 15 months of supply. Healthy for us is six to seven months,” said Bobby Dean from Prudential Showcase Properties.
While the rest of the country entered a real estate recession, the Wiregrass never quite followed suit.
“We never went in to the speculated prices that a lot of the rest of the country did,” explained Dean.
For buyers, it is good news. For sellers, it is tricky. Yet, a bit of pampering might be all you need to hit a “home” run.
“If they win the beauty contest, and win the price war, their houses are jumping off the market,” said Dean.
Wiregrass real estate has had a static level for about four years.
“The supply of houses is real good in Dothan right now,” said Grant.
However, they like to call themselves, the little engine that could.
“It’s shrinking. It’ll just take us a while to get there,” said Dean.
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