Moody's Investors Service reports that housing finance agencies (like AHFA) are in a strong position to capitalize on the wave of millennial homebuyers that are prepared to entire the market because of programs targeting first-time homebuyers. HFAs are able to offer down payment and closing cost assistance programs to first-time homebuyers, making millennials a natural fit for HFA loans. Roughly 15 percent of millennial homebuyers financed 100 percent of the purchase price of their homes and Moody's anticipates this number growing as more millennials become homeowners.
Birmingham's healthy, steady housing market helped it to rank at #4 on realtor.com's EasytoBuy Index. The index takes into account the full cost of homeownership; whether it’s a buying or renting market; and local conditions such as mortgage rates, insurance, taxes, and supply of affordable inventory.
More Alabama families will qualify for AHFA's Mortgage Credit Certificate program, thanks to increases in allowable household income and maximum sales price limits. The maximum sales price in target areas is now $316,177 and $258,690 in non-target areas. Home buyers can earn up to $83,250 in urban areas and $77,700 in rural areas, depending on family size and location.
Alabama new home sales in June increased 15.9 percent from last June. Consistent with seasonal trends, sales also increased by 82 units or 24.6 percent from the prior month.
New construction inventory increased 5.6 percent from June 2014.
The Alabama Center for Real Estate (ACRE) reports that Alabama residential sales totaling 5,200 units in June reflect an increase of 17.5 percent growth from the same period a year earlier.