Gulf Shores home prices have edged up for the third month in a row, albeit ever so slightly.
According to the Federal Housing Finance Agency’s (FHFA’s) monthly House Price Index (HPI), home prices rose 0.8 percent between March and April, on a seasonally adjusted basis. Previously, the FHFA had reported a 1.8 percent price increase in March, which has been revised to a 1.6 percent increase. Over the last year the Agency reports that home prices have risen 3.0 percent.
The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac.
Gulf Shores Home Prices, Sales and Inventory
The U.S. index is down 17.6 percent from its April 2007 peak and is now roughly the same as the April 2004 index level. The National Association of Realtors reported recently that in May, home prices rose, and sales slowed slightly.
Inventory shortages in certain areas have been developing since the beginning of the year. The slight pullback in monthly home sales is more likely due to supply constraints rather than softening demand. Even with May’s decline, existing home sales have recorded 11 consecutive months of gains over the same month a year earlier. The normal seasonal upturn in inventory did not occur this spring as it has typically in years past.
Meanwhile, banks are looking to alternatives to foreclosures that continue to punish home values, as seen in the reduced number of seizures. According to RealtyTrac, foreclosures fell 18 percent between May 2011 and May 2012.
The recovery continues despite excessively tight credit conditions and higher down-payment requirements, which are negating the impact of record high affordability conditions.
If you’d like to discuss Gulf Shores home prices, we’d like to invite you to contact us for a no obligation consultation into the current market conditions and how they may benefit you if you’re looking to buy a home in today’s Gulf Shores housing market.