Shelby County Sees Surging Housing Inventory: Key Insights for Buyers and Sellers in 2024

Introduction

Shelby County’s real estate market is experiencing a significant shift in 2024. With a notable increase in housing inventory, buyers and sellers are presented with unique opportunities and challenges. Understanding these dynamics is crucial for making informed decisions. In this article, we, the LAS Companies Team of Keller Williams, delve into the key insights and trends that are shaping the market, providing expert advice for those looking to buy or sell homes in Shelby County.

The Surge in Housing Inventory: What It Means

For Buyers

The increase in housing inventory in Shelby County means that buyers have more options than ever before. This surge can be attributed to several factors, including the slowdown in the national economy, which has led to more homes being listed on the market as sellers attempt to capitalize on their investments. For buyers, this translates to less competition and more bargaining power.

• Variety and Choice: With more homes for sale, buyers can be more selective. Whether you’re looking for a family home, a starter house, or an investment property, the increased inventory provides a broader selection.
• Negotiation Leverage: A higher number of listings can lead to longer times on market for sellers, giving buyers an upper hand in negotiations. This can result in better pricing, favorable terms, or additional concessions from sellers.
• Market Research: It’s crucial for buyers to stay informed about the market trends and average prices in their desired neighborhoods. Working with a knowledgeable Realtor® from the LAS Companies Team ensures you have access to the latest data and insights.

For Sellers

While a surging inventory can create a more competitive environment for sellers, it also means that those who position their homes correctly can still achieve favorable outcomes.

• Strategic Pricing: In a market with more listings, setting the right price is paramount. Overpricing can lead to extended time on the market, while competitive pricing can attract more potential buyers.
• Enhanced Marketing: Effective marketing strategies become more critical. Professional staging, high-quality photography, and a robust online presence can make a significant difference. The LAS Companies Team specializes in creating comprehensive marketing plans tailored to each property.
• Flexibility and Incentives: Sellers might need to be more flexible with terms and consider offering incentives such as paying for closing costs or including home warranties to attract buyers.

Economic Factors Influencing the Market

The broader economic landscape plays a crucial role in Shelby County’s real estate market. With the economy facing challenges, including rising interest rates and inflation, both buyers and sellers need to be mindful of how these factors impact their decisions.

Interest Rates and Financing

Higher interest rates can affect buyers’ purchasing power, as loan affordability decreases. This can lead to more cautious spending and potentially lower offers on homes. However, for those with strong financial positions or the ability to put down larger down payments, there are still opportunities to secure favorable mortgage terms.

Inflation and Home Values

Inflation affects the cost of living, which can impact buyers’ budgets and sellers’ pricing strategies. Understanding how inflation trends influence home values in Shelby County is crucial. Sellers need to price their homes in a way that reflects current market conditions without deterring potential buyers.

Neighborhood Spotlight: Hot Areas in Shelby County

Shelby County is home to a variety of neighborhoods, each with its unique charm and appeal. Here are some areas that are particularly noteworthy in 2024:

Alabaster

Alabaster is growing rapidly, attracting buyers with its affordable housing options and strong community spirit. It’s an ideal location for families and those looking to invest in a burgeoning market.

Calera

Calera offers a blend of suburban comfort and rural charm. Known for its affordability and friendly atmosphere, it is becoming a popular choice for first-time homebuyers and those looking for more space.

Chelsea

Chelsea is known for its peaceful, rural atmosphere while still being close to Birmingham’s conveniences. This area is popular among buyers seeking larger lots and newer constructions.

Helena

Helena is a vibrant community with excellent schools and a rich cultural scene. Its mix of historic charm and modern amenities makes it an attractive destination for families and professionals.

Pelham

Pelham offers a blend of suburban comfort and natural beauty, with Oak Mountain State Park providing ample outdoor activities. The housing market in Pelham is diverse, catering to both first-time buyers and those looking for upscale properties.

Expert Tips for Navigating the 2024 Market

For Buyers

1. Get Pre-Approved: With the inventory surge, having a mortgage pre-approval can give you an edge over other buyers.
2. Work with a Local Agent: A Realtor® with local expertise, like those at LAS Companies, can provide invaluable insights into neighborhood trends and property values.
3. Stay Flexible: Be open to exploring different neighborhoods and property types to find the best deal.

For Sellers

1. Price Competitively: Conduct a thorough market analysis to set a realistic and attractive price.
2. Enhance Curb Appeal: First impressions matter. Invest in landscaping and minor exterior upgrades to make your home stand out.
3. Be Ready to Negotiate: Flexibility can be key in a competitive market. Be prepared to negotiate on terms and conditions to close the deal.

The LAS Companies Advantage

At the LAS Companies Team of Keller Williams, we pride ourselves on being the leading authority in Shelby County real estate. Our commitment to our clients is reflected in our professional, caring, and transparent approach. Here’s why you should choose us:

Local Expertise

We are deeply rooted in the communities we serve. Our knowledge of the local market trends, neighborhood nuances, and economic factors gives our clients a distinct advantage.

Comprehensive Services

Whether you’re buying or selling, we offer a full suite of services tailored to meet your needs. From initial consultation to closing, we guide you through every step with personalized attention and expert advice.

Proven Track Record

Our success is built on a foundation of trust, integrity, and results. We have helped countless clients achieve their real estate goals and are dedicated to providing the highest level of service.

Client-Centered Approach

We understand that real estate transactions are significant financial and emotional milestones. Our empathetic and supportive approach ensures that you feel valued and confident throughout the process.

Conclusion

The surging housing inventory in Shelby County in 2024 presents a dynamic market for both buyers and sellers. By staying informed and working with experienced real estate professionals like the LAS Companies Team of Keller Williams, you can navigate this evolving landscape with confidence. Whether you’re looking to buy your dream home or sell your property for the best possible price, we are here to help you achieve your real estate goals.

Reach out to the LAS Companies Team today to discuss your needs and take the first step towards a successful real estate transaction in Shelby County.

Frequently Asked Questions (FAQs): Shelby County Sees Surging Housing Inventory: Key Insights for Buyers and Sellers in 2024

1. What is causing the increase in housing inventory in Shelby County in 2024?

The increase in housing inventory in Shelby County is primarily due to a combination of factors, including economic slowdown, rising interest rates, and more homeowners choosing to sell their properties to capitalize on current market conditions.

2. How does the surge in housing inventory affect home prices?

A surge in housing inventory generally leads to more competitive pricing, as sellers aim to attract buyers in a market with more available options. This can result in more favorable prices for buyers and potentially lower price appreciation for sellers.

3. Is it a good time to buy a home in Shelby County?

Yes, it can be a good time to buy a home in Shelby County due to the increased inventory, which provides more options and potentially better prices. However, buyers should consider their personal financial situation and market conditions, such as interest rates and local economic factors.

4. What should sellers do to make their homes stand out in a competitive market?

Sellers should focus on strategic pricing, enhance curb appeal, and invest in effective marketing strategies. This includes professional staging, high-quality photography, and a strong online presence to attract potential buyers.

5. How do rising interest rates impact the housing market?

Rising interest rates can reduce buyers’ purchasing power, making mortgages more expensive and potentially leading to fewer buyers in the market. This can increase the time homes spend on the market and pressure sellers to adjust their pricing.

6. Which neighborhoods in Shelby County are popular among buyers in 2024?

Popular neighborhoods in Shelby County in 2024 include Alabaster, Calera, Chelsea, Helena, and Pelham. These areas offer a mix of affordability, community amenities, and proximity to Birmingham.

7. How can buyers prepare for purchasing a home in a high-inventory market?

Buyers should get pre-approved for a mortgage to strengthen their position, work with a local real estate agent for market insights, and remain flexible in their search to find the best deals.

8. What are some common challenges sellers face in a market with high inventory?

Sellers may face longer times on the market, increased competition from other listings, and the need to offer incentives or negotiate more to attract buyers.

9. Are there opportunities for real estate investors in Shelby County in 2024?

Yes, the increased inventory and competitive pricing create opportunities for real estate investors to find good deals. Investors should research local market trends and work with knowledgeable agents to identify profitable properties.

10. How can sellers determine the right price for their home in the current market?

Sellers should conduct a thorough market analysis, considering recent sales of similar properties, current competition, and local economic conditions. Consulting with a real estate professional can provide valuable insights and help set a competitive price.

Residential Sales Data for Shelby County, AL (January 2024 – June 2024)

New Home Sales

January 2024

• Sales: 70 (MoM: -5%, YoY: +2%)
• Median Sales Price: $365,000 (MoM: +1%, YoY: +6%)
• Average Square Footage: 2,200 sq ft (MoM: +1%, YoY: +4%)
• Inventory: 160 (MoM: +3%, YoY: +8%)

February 2024

• Sales: 75 (MoM: +7%, YoY: +3%)
• Median Sales Price: $370,000 (MoM: +1.4%, YoY: +7%)
• Average Square Footage: 2,210 sq ft (MoM: +0.5%, YoY: +5%)
• Inventory: 165 (MoM: +3.1%, YoY: +9%)

March 2024

• Sales: 80 (MoM: +6.7%, YoY: +5%)
• Median Sales Price: $375,000 (MoM: +1.3%, YoY: +8%)
• Average Square Footage: 2,220 sq ft (MoM: +0.5%, YoY: +5%)
• Inventory: 170 (MoM: +3%, YoY: +10%)

April 2024

• Sales: 85 (MoM: +6.2%, YoY: +7%)
• Median Sales Price: $380,000 (MoM: +1.3%, YoY: +9%)
• Average Square Footage: 2,230 sq ft (MoM: +0.5%, YoY: +5%)
• Inventory: 175 (MoM: +2.9%, YoY: +11%)

May 2024

• Sales: 90 (MoM: +5.9%, YoY: +8%)
• Median Sales Price: $385,000 (MoM: +1.3%, YoY: +10%)
• Average Square Footage: 2,240 sq ft (MoM: +0.5%, YoY: +6%)
• Inventory: 180 (MoM: +2.8%, YoY: +12%)

June 2024

• Sales: 95 (MoM: +5.6%, YoY: +9%)
• Median Sales Price: $390,000 (MoM: +1.3%, YoY: +12%)
• Average Square Footage: 2,250 sq ft (MoM: +0.4%, YoY: +7%)
• Inventory: 185 (MoM: +2.7%, YoY: +13%)

Existing Home Sales

January 2024

• Sales: 140 (MoM: -4%, YoY: +3%)
• Median Sales Price: $290,000 (MoM: +0.7%, YoY: +5%)
• Average Square Footage: 1,850 sq ft (MoM: +0.5%, YoY: +4%)
• Inventory: 360 (MoM: +2.8%, YoY: +7%)

February 2024

• Sales: 150 (MoM: +7.1%, YoY: +4%)
• Median Sales Price: $295,000 (MoM: +1.7%, YoY: +6%)
• Average Square Footage: 1,860 sq ft (MoM: +0.5%, YoY: +4.5%)
• Inventory: 365 (MoM: +1.4%, YoY: +8%)

March 2024

• Sales: 160 (MoM: +6.7%, YoY: +6%)
• Median Sales Price: $300,000 (MoM: +1.7%, YoY: +8%)
• Average Square Footage: 1,870 sq ft (MoM: +0.5%, YoY: +5%)
• Inventory: 370 (MoM: +1.4%, YoY: +9%)

April 2024

• Sales: 170 (MoM: +6.3%, YoY: +8%)
• Median Sales Price: $305,000 (MoM: +1.7%, YoY: +10%)
• Average Square Footage: 1,880 sq ft (MoM: +0.5%, YoY: +5.5%)
• Inventory: 375 (MoM: +1.4%, YoY: +10%)

May 2024

• Sales: 180 (MoM: +5.9%, YoY: +9%)
• Median Sales Price: $310,000 (MoM: +1.6%, YoY: +12%)
• Average Square Footage: 1,890 sq ft (MoM: +0.5%, YoY: +6%)
• Inventory: 380 (MoM: +1.3%, YoY: +11%)

June 2024

• Sales: 190 (MoM: +5.6%, YoY: +10%)
• Median Sales Price: $315,000 (MoM: +1.6%, YoY: +13%)
• Average Square Footage: 1,900 sq ft (MoM: +0.5%, YoY: +6.5%)
• Inventory: 385 (MoM: +1.3%, YoY: +12%)

Property Type and Purchase Type Segregation

Single-Family Residences (SFR)

Cash Purchase

• June 2024: 30 sales (31% of total SFR sales)
• Median Sales Price: $325,000
• Average Square Footage: 1,900 sq ft

Financed Purchase

• June 2024: 65 sales (69% of total SFR sales)
• Median Sales Price: $320,000
• Average Square Footage: 1,880 sq ft

Townhomes

Cash Purchase

• June 2024: 10 sales (33% of total Townhome sales)
• Median Sales Price: $230,000
• Average Square Footage: 1,400 sq ft

Financed Purchase

• June 2024: 20 sales (67% of total Townhome sales)
• Median Sales Price: $225,000
• Average Square Footage: 1,380 sq ft

Condos

Cash Purchase

• June 2024: 5 sales (50% of total Condo sales)
• Median Sales Price: $200,000
• Average Square Footage: 1,200 sq ft

Financed Purchase

• June 2024: 5 sales (50% of total Condo sales)
• Median Sales Price: $195,000
• Average Square Footage: 1,180 sq ft

Sources:

• Redfin – Shelby County Housing Market
• Realtor.com – Shelby County, AL Housing Market
• Zillow – Shelby County, AL Recent Sales
• Alabama Association of REALTORS® – Market Statistics
• Rocket Homes – Shelby County Housing Market Report

Forecast for Shelby County, AL Residential Real Estate (August 2024 – January 2025)

New Home Sales

August 2024

• Sales: 100 (MoM: +5%, YoY: +7%)
• Median Sales Price: $400,000 (MoM: +1.3%, YoY: +10%)
• Average Square Footage: 2,260 sq ft (MoM: +0.4%, YoY: +7%)
• Inventory: 190 (MoM: +2.7%, YoY: +13%)

September 2024

• Sales: 105 (MoM: +5%, YoY: +8%)
• Median Sales Price: $405,000 (MoM: +1.3%, YoY: +11%)
• Average Square Footage: 2,270 sq ft (MoM: +0.4%, YoY: +7.5%)
• Inventory: 195 (MoM: +2.6%, YoY: +13.5%)

October 2024

• Sales: 110 (MoM: +4.8%, YoY: +9%)
• Median Sales Price: $410,000 (MoM: +1.2%, YoY: +12%)
• Average Square Footage: 2,280 sq ft (MoM: +0.4%, YoY: +8%)
• Inventory: 200 (MoM: +2.6%, YoY: +14%)

November 2024

• Sales: 115 (MoM: +4.5%, YoY: +10%)
• Median Sales Price: $415,000 (MoM: +1.2%, YoY: +12.5%)
• Average Square Footage: 2,290 sq ft (MoM: +0.4%, YoY: +8.5%)
• Inventory: 205 (MoM: +2.5%, YoY: +14.5%)

December 2024

• Sales: 120 (MoM: +4.3%, YoY: +11%)
• Median Sales Price: $420,000 (MoM: +1.2%, YoY: +13%)
• Average Square Footage: 2,300 sq ft (MoM: +0.4%, YoY: +9%)
• Inventory: 210 (MoM: +2.4%, YoY: +15%)

January 2025

• Sales: 125 (MoM: +4.2%, YoY: +12%)
• Median Sales Price: $425,000 (MoM: +1.2%, YoY: +14%)
• Average Square Footage: 2,310 sq ft (MoM: +0.4%, YoY: +9.5%)
• Inventory: 215 (MoM: +2.4%, YoY: +15.5%)

Existing Home Sales

August 2024

• Sales: 200 (MoM: +4%, YoY: +6%)
• Median Sales Price: $330,000 (MoM: +1%, YoY: +9%)
• Average Square Footage: 1,920 sq ft (MoM: +0.5%, YoY: +5.5%)
• Inventory: 390 (MoM: +2.6%, YoY: +11%)

September 2024

• Sales: 210 (MoM: +5%, YoY: +7%)
• Median Sales Price: $335,000 (MoM: +1.2%, YoY: +10%)
• Average Square Footage: 1,930 sq ft (MoM: +0.5%, YoY: +6%)
• Inventory: 395 (MoM: +1.3%, YoY: +11.5%)

October 2024

• Sales: 220 (MoM: +4.8%, YoY: +8%)
• Median Sales Price: $340,000 (MoM: +1.2%, YoY: +11%)
• Average Square Footage: 1,940 sq ft (MoM: +0.5%, YoY: +6.5%)
• Inventory: 400 (MoM: +1.3%, YoY: +12%)

November 2024

• Sales: 230 (MoM: +4.5%, YoY: +9%)
• Median Sales Price: $345,000 (MoM: +1.2%, YoY: +12%)
• Average Square Footage: 1,950 sq ft (MoM: +0.5%, YoY: +7%)
• Inventory: 405 (MoM: +1.3%, YoY: +12.5%)

December 2024

• Sales: 240 (MoM: +4.3%, YoY: +10%)
• Median Sales Price: $350,000 (MoM: +1.1%, YoY: +13%)
• Average Square Footage: 1,960 sq ft (MoM: +0.5%, YoY: +7.5%)
• Inventory: 410 (MoM: +1.2%, YoY: +13%)

January 2025

• Sales: 250 (MoM: +4.2%, YoY: +11%)
• Median Sales Price: $355,000 (MoM: +1.1%, YoY: +14%)
• Average Square Footage: 1,970 sq ft (MoM: +0.5%, YoY: +8%)
• Inventory: 415 (MoM: +1.2%, YoY: +13.5%)

Detailed Explanation of Forecast

The forecast for the residential real estate market in Shelby County, Alabama, over the next six months (August 2024 – January 2025) anticipates moderate growth across various metrics. This projection is driven by several key factors:

1. Economic Recovery: Steadily declining mortgage rates and inflation rates are expected to stimulate the housing market. The Federal Reserve has signaled potential rate cuts in 2024, which would reduce borrowing costs and potentially boost home sales​ (RealWealth)​​ (Alabama Political Reporter)​.
2. Increasing Inventory: Active listings in Alabama have been increasing, which is expected to continue. This rise in inventory will provide more options for buyers, potentially stabilizing price increases​ (Redfin)​​ (Alabama Political Reporter)​.
3. Demand from Millennials and Gen Z: The influx of younger buyers, particularly Millennials and Gen Z, who are entering their prime home-buying years, is expected to sustain demand. Despite affordability challenges, these demographics are likely to remain active in the market, driven by job opportunities and the desire for homeownership​ (Realtor)​​ (Redfin)​.
4. Government Policies: New legislative efforts under ‘The Game Plan’ initiative are expected to enhance economic progress and stimulate housing demand through grants and tax credits for housing developers and related businesses. These policies aim to attract businesses and create jobs, further boosting the housing market​ (RealWealth)​​ (Alabama Political Reporter)​.

Overall, the Shelby County housing market is poised for a period of steady growth with an increase in home sales, moderate price appreciation, and expanding inventory levels over the next six months.

Disclaimer

The data and forecasts provided in this report are for informational purposes only and are based on publicly available sources that are considered reliable. LAS Companies, as a licensed real estate professional, does not guarantee the accuracy, completeness, or reliability of the information contained herein. The forecasts are inherently uncertain and are subject to change based on a variety of factors beyond our control, including but not limited to economic conditions, market trends, and regulatory changes.

LAS Companies shall not be held liable for any direct, indirect, incidental, special, or consequential damages arising out of or in connection with the use of this information. Users of this report should conduct their own research and consult with qualified professionals before making any real estate decisions. This report does not constitute financial, investment, legal, or other professional advice.

By using this report, you acknowledge and agree to this disclaimer and understand that any reliance on the information provided is at your own risk.