Montgomery housing market seen as stable

Posted by Samuel King - bio | email

MONTGOMERY, AL (WSFA) - A national magazine says Montgomery is one of America's lowest-risk housing markets.  Smart Money magazine cites the area's stable economy as the reason housing here is a safe bet.

Angela Parks moved into her dream home in Cloverdale two months ago, despite some initial reservations.

"I was concerned whether I would qualify for another mortgage because things have changed, in the five years since I bought my last house, but there was no problem," Parks said.

Realtor Sandra Nickel with the Hat Team says many would-be buyers are coming off the fence.

"A lot of buyers sat on the fence for a long time, waiting for prices to fall further, and in Montgomery, what they found is not only prices not falling very much if at all," Nickel said.  "But the cost of ownership with interest rates going up is jumping, so they're jumping off of the fence and into the market."

3,556 properties were sold in the River Region in 2010 compared to 3,855 properties in 2009.  But Nickel says there are signs business is on the upswing.

"The business that we have booked to close in January or February is far and away better way ahead of 2010," Nickel said.  "All of the indicators are positive."

Nickel is worried about the inventory in the River Region housing market. She says there are about twice as many houses on the market as there should be.

"I think the people that need to sell are going to have to come to grips with today's market, and price accordingly," Nickel said.  "And I wish that those who don't want to sell, who are just seeing if somebody would buy their house, would take their houses off the market, which help their neighbors would do need to sell."

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