Alabama Real Estate Market Trends & Analysis
The Alabama real estate market may be summed up in one word: affordability. Despite median home values increasing for seven consecutive years, low interest rates and improvements made to the state’s median family income levels have made it easier for more people to actively participate in the housing market. At this point, it’s actually cheaper to buy a home in most parts of Alabama than to rent one.
It is worth noting, however, that the latest increase in affordability coincides with a significant caveat: homeownership has become so attractive across the entire state that inventory levels are suffering. For the better part of 2019, existing inventory levels have been unable to satiate demand. A great deal of prospective buyers are stuck on the sidelines, which bodes incredibly well for local real estate investors who are able to find and acquire deals. The combination of affordability and demand suggests Alabama may be a great place to invest for the foreseeable future.
It is worth noting, however, that the latest increase in affordability coincides with a significant caveat: homeownership has become so attractive across the entire state that inventory levels are suffering. For the better part of 2019, existing inventory levels have been unable to satiate demand. A great deal of prospective buyers are stuck on the sidelines, which bodes incredibly well for local real estate investors who are able to find and acquire deals. The combination of affordability and demand suggests Alabama may be a great place to invest for the foreseeable future.
Alabama Real Estate Fees & Regulations
Real Estate
| Closing Conducted by: | Attorneys, Title Companies |
| Conveyance: | Warranty Deed |
Foreclosure Procedure
| Primary Foreclosure Method: | Non-Judicial |
| Process Period: | 1 - 3 months |
| Notice of Sale: | Trustee |
| Redemption Period: | Up to 12 Months |
Taxes
| Income Tax: | 2.0% - 5.0% |
| Corporate Tax: | 6.50% |
| Sales Tax: | 4.00% |
| Estate Tax: | No |
| Inheritance Tax: | No |
| Median Property Tax: | 0.33% |
| Property Taxes by County: | http://www.tax-rates.org/alabama/property-tax#Counties |
Average Transactional Costs
| Closing Cost: | $2,613 |
| Transfer Fee: | Deeds 0.1%; Mortgages 0.15% |
| Origination Fee: | $1,967 |
Overview
- Median Home Value: $132,800
- 1-Year Appreciation Rate: +4.6%
- Median Home Value (1-Year Forecast): +2.1%
- Median Rent Price: $1,050
- Price-To-Rent Ratio: 10.53
- Average Days On Market: 71
- Percent With Negative Equity: 14.8%
- Unemployment Rate: 3.3% (latest estimate by the Bureau Of Labor Statistics)
- Population: 4,887,871 (latest estimate by the U.S. Census Bureau)
- Median Household Income: $46,472 (latest estimate by the U.S. Census Bureau)
Alabama Foreclosure Trends & Statistics
Tax Lien Investing
- Tax Lien or Deed: Tax Lien and Tax Deed state
- Interest Rate: 12%
- Redemption Period: 3 years