Local housing market 'good'

By Staff
Mike Self, FCT Sports Editor
According to a study done by the Alabama Real Estate Research and Education Center at the University of Alabama, existing home sales in the state increased in December, 2006, by 223 homes, or 5.27 percent, over November.
A total of 4,457 units sold in December, compared with November's 4,243 units.
"The market has improved," said local realtor John Davidson of Davidson Realty. "Prices have gone up, and values are on the way up. The cost of building homes has gone up, so it's cheaper to buy an existing home right now. Of course, as the cost of building a home increases, the cost of buying an existing home will also increase."
The research also indicated that existing home prices in Alabama dropped by 5.09 percent from November to December, 2006, with an average sales price of $154,417. For all of 2006, the average selling price of an existing home in Alabama was $156,370, which is 5.52 percent higher than the average selling price in 2005.
Compared to the same time last year, existing home sales were actually down a bit this year. December sales were down 5.47 percent compared to December 2005. For the year 2006, total sales of existing homes were down 1.17 percent compared with 2005.
"They may have been down a little bit this past year because of the overall economy," said Jane Mitchell of Alverson Real Estate. "People might be a little undecided about what to do in the current situation."
According to the study, the average number of days a home was on the market in Alabama decreased in December to 120 days from 126 in November. The average number of days a home was on the market in all of 2006 was 123, a seven-day decrease in the 130 average for days a home was on the market in 2005.
"It's pretty stable. The average time for a home to be on the market is about 120 to 180 days, or four to six months," Davidson said.
Mike Self can be reached by email at mself@fct.wpengine.com