Appreciation in the Birmingham Market

  • 1 year ago
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Home exterior and lawn

Data for this article is from Greater Alabama MLS

A couple of weeks ago I was listening to a podcast by the well respected realtor and real estate investor Tim Rhode. He had mentioned something about only buying homes within the path of growth of your city. I thought that was an interesting way to look at it and had to get the numbers for each area around our growing city of Birmingham.

There are a few notable outliers that skew the data slightly. I tried to quash most of the outliers in the average column but some I couldn’t remove. An outlier specific to this data set would be a very small home or a very large expensive home selling in a market where there aren’t many similar properties.

One example is the 30% increase in land/1 bedroom properties in Center Point, but that data is only taking into account one home each year.

Going into this research I was certain that Homewood and Mountain Brook would be the highest appreciating markets and I was completely wrong. Homewood and Mountain brook areas are already so high in price that they reach somewhat of an appreciation ceiling where it just cant possibly keep up with rates of areas like Southside. North Shelby-Hoover is also a fantastic area and I believe the main cause is the sheer number of new developments in the area.

Why Southside? Southside is one of the best areas surrounding downtown. Cliff views overlook the city and the main social spots around Birmingham are within a short drive. Get it now before you’re regretting it 5 years down the road.

Ben Hedden

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