Home sales in North AL recovering

Source: MGN Online
Source: MGN Online

NORTH ALABAMA (WAFF) - Recovery in the housing market is being felt with home prices jumping 12 percent across the country, the most in seven years.

The surge is felt everywhere else but two states: Delaware and Alabama, where home prices actually fell since last year.

In the yellowhammer state, prices actually went down. Overall, that's bad news for the state's economy but when you take a closer look, home sales in North Alabama are doing better than in other parts of the state.

Jim Hoekenschnieder with Legend Realty said what may be helping slightly is investors coming back into the market and buying properties.

The jump in home prices across the country really helped states like Nevada and California that had huge losses when the housing bubble burst.

The data is looking at Alabama as a whole where in the south specifically along the coastal areas, they did see a considerable drop with 30, 40, 50 percent in property values.

Hoekenschnieder said if you just look at north Alabama, the picture doesn't look so grim.

"Eight to ten percent loss compared to other areas of the country where they showed losses, we're going to be a little slower to recover now I will say this, we are starting to see some of those investors coming back into the market again," said Hoekenschnieder.

Steady hiring and low mortgage rates have encouraged more Americans to buy homes. Greater demand and a limited number of homes for sale have pushed prices higher.

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