Foreclosures Behind the Drop in Prices

According to CoreLogic, home prices rose 3.3% statewide compared to 2012.  This trend continued across the state with a few exceptions during the month of September.  Prices fell in mobile along with four other metro areas that include Tuscaloosa, Huntsville, Aurburn-Opelika and Dothan.  
Distressed sales and foreclosures are dragging prices down in these areas, with the exception of Aurburn.  In Mobile, Huntsville, Tuscaloosa and Dothan home prices would have increased if these short sales and foreclosures would have been excluded from the analysis.  
The Auburn-Opelika market was the only market that prices would have still fallen even without the effect of the distressed property sales.  This perplexing state is a question mark as to the reason.  In September the Auburn home market was featured on CBSNews, in its list of “10 Cities That May Not Make It Back From The Crash.”    
According to Grayson Glaze, the executive director of the Alabama Center for Real Estate, he is optimistic regarding the home prices.  He states “overall fundamentals in that market remain resilient,” with the city’s unemployment rates remaining low.  
Alabama’s 3.3% increase in home prices ranked 38th in the country in September.  Alabama has increased in ranking compared to other states throughout all of 2013.  See the September home price comparison for the month of September for the various Alabama areas below.

Click here to view the foreclosures in Gulf Shores

Area              %

Nationwide    12
Alabama    3.3
Anniston-Oxford    8.3
Auburn-Opelika    -5.5
Birmingham-Hoover    6.8
Decatur    3.8
Dothan    -6.1
Florence    3.3
Gadsden    3.3
Huntsville    -4.9
Mobile    -2.1
Montgomery    5.1
Tuscalsoosa    -1.5