HUNTSVILLE, Ala. — Being a first-time homebuyer in today’s market can be tough. "The build-to-rent concept really was born out of a lot of the challenges that first time homebuyers face and today's environment," Ron Dinwiddie, Executive Vice President of Marketing and Management Services at Landmark Properties shares. "Typically, high prices of houses across the country, and then also this high interest rate environment that we're in and what we've seen over the last few years is that because of those challenges that are present, an increasing number of folks want to be able to live in a neighborhood environment, something that feels like the neighborhood they would have purchased in, but they want the flexibility of renting."
A build-to-rent property is any property that has been designed specifically for the use of long-term renters and The Everstead in Madison is the city’s latest build to rent community. "So, our ever said at Madison project is under construction right now with the last few phases still delivering," Dinwiddie explains. "Ultimately, when the project is completed, we'll have 231 units, a range of 1-to-4-bedroom structures and in a variety of different configurations. We'll have some duplex units and then we'll have some townhome units. So, kind of a range of options that residents can choose from."
Dinwiddie shares that they see this concept as an intermediate step towards home ownership. "Because of those high hurdles, particularly for first time homebuyers, what we see is that we'll get renters that want to be able to have that flexible option and maybe their planning for a home purchase down the road," Dinwiddie shares. "This product gives you that feeling of kind of owning, having a place that feels like a home that you own while you kind of get your ducks in a row to make that next step and take your first-time home purchase or make a home purchase in the area. So yes, I think it actually acts as an intermediary step as people kind of work from maybe a traditional apartment to ultimately owning a home down the road."
With its continued growth, Huntsville could be seeing more of these communities in the future Dinwiddie shares. "We have a lot more in the pipeline and ultimately we feel like this is a really hot space across the country so, it is an area that we see a lot of future growth in."
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While outside chatter would make you think the housing market is in trouble, Q1 2024 reports show a much different picture. "We feel like the market is balanced. It's a good time to buy," Lore Hislop, president of the Huntsville Area Association of Realtors shares. "You know, the old buyer-seller's market is a very common term. You hear all over the news and we say market because our inventory is leveling out."
After seeing inventory demand suffer during the pandemic, according to the reports Hislop shares the market is now catching up. "So just for an example for comparison, Covid, we had under a month's supply at some points, which was insane for buyers, right," Hislop explains. "So now the market has over 3 to 4 months of inventory. So that's very helpful for buyers and it's good for sellers as well and I think all across the nation we're seeing this sort of a seller is selling, then they will benefit on the buy side."
A few highlights from the report that can be seen here:
• Average days on market was 44 days for the quarter, which is around 33% more than the 1Q 2023.
• The number of units on the market in March 2024 (1814) increased 30.2% compared to March 2023.
• 45% of all sales were below list price while 17% of sales are above list price.
• The average number of listings increased in all price ranges except for the $650-$800,000 price band.
Another benefit from the increase inventory, more affordable options. "So, we are seeing a lot more inventory in that, an attainability range we like to call it," Hislop shares. "And so, we're really excited. We are seeing 45% of the homes currently selling, at least it's all in hindsight, below list price and then around 17% above list price."
Concerns about interest rates seem to be a concern around the U.S., but there is assistance available. "It's a funny cliche. They say, 'date the rate, fall in love with the house'," Hislop shares. " So, there are lots of wonderful banks and mortgage assistance that are coming into the market. Now we're seeing a promise from the fed that those rates will be coming down, which will give us a more affordable way into the market. The rate on a 30-year average, the rates for 7.7%, okay, that's a 30-year average. So, at 6.7% is where the rates are this week and they're still well below the 30-year mortgage rate average.
If you are looking to buy in the Huntsville market, the time is now. "So, we feel like the market is balanced. It's a good time to buy and we believe and support, you know, if you have your realtor champions helping you and your mortgage partner, I think it's a great time to be in the market."