2020 has been quite the year so far. To say that we live in uncertain times is an understatement. Even the experts are having a hard time predicting how the housing market will respond to the varying effects of the pandemic, both in the short and long term. While no guarantee of the future, several indicators are encouraging, suggesting the foretold "crash" may never come.
Each month, Freddie Mac provides home value data for the nation as a whole, for the 50 states and District of Columbia, and 367 metropolitan statistical areas in the Freddie Mac House Price Index. It provides a measure of typical price inflation for houses within the United States. Values are calculated monthly and released at the end of the following month. As you can see in the graphic, Alabama enjoyed an 8.2% increase in July 2020 as compared to July 2019. This was during the peak of the Covid-19 outbreak. The numbers were even better for August, with a 9.6% increase over August of 2019, and a 1.2% increase over July of 2020. The FMHPI is based on an ever-expanding database of loans purchased by either Freddie Mac or Fannie Mae.
Alabama's Gulf Coast also had an unwelcome visitor in September, when Hurricane Sally slowly moved through our area. We're well on our way to recovery, with on-going clean-up and rebuilding efforts moving along quickly, but most residents were without basic utilities for the better part of a week, some even longer. Inventory has been in an overall downward trend, and the storm didn't help. Fewer houses on the market makes it a great time to sell, though! If you've been considering putting your home on the market but aren't sure what it's worth or what steps to take, give me a call! I'll be happy to answer any questions you have, and would love the opportunity to earn your business.