Today, July 27, 2008 the Birmingham News (Click for full Article) ran an article by Jeff Hansen and Jeremy Gray citing us. The thrust of the article was how slim the house appreciation has been in Shelby county this last year. I’m quoted as saying I think it will get worse, due to the high inventory levels, falling sales levels.
Shelby property value rate increase is slower than usualTax stream reduction affects roads, schoolsSunday, July 27, 2008JEREMY GRAY and JEFF HANSEN
News staff writers
The average value of a home in Shelby County last year rose 2.6 percent, according to a Birmingham News analysis of the county’s recent revaluation of property.
And 5,020 homes – about 9 percent of the county’s total – had a drop in value, according county appraisers.
These numbers are a sharp change from last year’s revaluation, where only 287 Shelby County owners saw a decrease in home value and the average home value increase was 8.5 percent.
My comments are as follows:
The number of used homes listed for sale has ballooned 66 percent since June 2006, according to Tom Brander, editor and publisher of the Rudulph/Brander Birmingham Area Monthly Residential Real Estate Report. And a 12-month moving average of the number of used homes sold hit a peak in November 2005 and downward trend since, according to analysis of Multiple Listing Service numbers by Brander.
“There are a heck of a lot more houses on the market than back then,” Brander said. “Therefore, the competition to sell is much greater. … The buildup in inventory and the lack of price reduction is going to come home to roost in Shelby County.”
What do you think?