GUEST COLUMN
REAL ESTATE SNAPSHOT by Dr. Reid Cummings
Real estate markets on both sides of Mobile Bay were quite active in 2019, experiencing persistent seller’s market conditions throughout the year – rising prices and decreasing inventories. The total value of all real estate transactions recorded at the Mobile and Baldwin County probate courts, including those closed by real estate professionals, was $5.12 billion – a 6.1% increase over 2018 regional totals. Sales activity was robust throughout the region, with most real estate categories experiencing growth.
The big question is what happens next? We scanned multiple publications and found some interesting outlooks. Housing affordability will be a progressively concerning problem in markets throughout the country, not
just in big cities. New single-family home sizes will continue to decrease. It’s believed that mortgage interest rates will remain low, fueling demand. Home sales, property values and residential rents will grow, albeit more slowly.
Housing affordability will be a progressively concerning problem in markets throughout the country, not just in big cities.
Challenges for the retail real estate sector will increase significantly. Environmental and social concerns will heighten emphasis on real estate sustainability, increasing communities’ and developers’ focus on adaptive reuse as a viable real estate development alternative.
ABOUT THE EXPERT
Source: Metro Market Trends - Copyright © University of South Alabama Center for Real Estate and Economic Development.
Source: Metro Market Trends - Copyright © University of South Alabama Center for Real Estate and Economic Development.
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APRIL 2020
Dr. Reid Cummings is an associate professor of finance and real estate and the director of the Center for Real Estate and Economic Development at the University of South Alabama. He has more than 36 years of experience in real estate development, leasing, management, brokerage, financial consulting, mortgage lending and construction services. He has served as a member of the Alabama Real Estate Commission since 2011 and is an advisory board member of The University of Alabama Center for Insurance Information and Research. He can be reached at cummings@ southalabama.edu or 251.460.6710.
