Low interest rates, shortage of inventory driving forces behind Dothan housing market boom
DOTHAN, Ala. (WTVY) - Despite the ongoing coronavirus pandemic, the housing market continues to boom here in the Wiregrass.
“Right now, we are in a very, very hot market,” said Stephen Holland.
Holland is a local realtor and president of Property Champions Real Estate.
Holland said interest rates are at a historical low.
“We’re still seeing interest rates in the three’s (percent),” Holland said. “So as far as interest rates on a historical level, you can’t really beat that.”
Those rates mean now is the time to buy a home.
For Holland, there was a 40% increase in demand in December 2020 compared to the previous year.
The housing market, however, is facing a shortage of homes for sale, which makes the demand even greater.
“With that shortage of inventory on the market, it’s the perfect time to sale as well,” Holland said. “So we’re not seeing homes last very long on the market. If they’re move-in ready and priced right, they’re not lasting long.”
Holland says there is a variety of people interested in moving to the area...
“It’s perfect for retirees who want maybe access to the beach or can easily travel, but still live in a smaller city,” Holland said.
Fort Rucker’s military base is also contributing to the demand..
“We have a large military community, and a lot of the military who are stationed here spend time here, love to retire here,” Holland said.
With more people moving from larger cities, the local housing market is showing no signs of slowing down anytime soon.
According to the National Association of Realtors, the prices of existing homes rose by .7% percent in December. Home sales in 2020 reached their highest level since 2006.
Copyright 2021 WTVY. All rights reserved.