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An Interesting Trend Among New Homes As a residential real estate appraiser in the Birmingham, AL market for over 30 years I have seen many changes in new home construction. Additionally, advances in construction techniques have made it more cost-effective to build compact homes that are efficient and eco-friendly.
These steeper interest rates make it harder to buy homes and place them in the right bracket for easy flips. During the past three to four years, housing construction has slowed to a virtual standstill. Not being able to secure an affordable loan will hold back many flippers who can’t buy homes outright.
However, while having historical roots, the town feels very modern. Over half the homes are of newer construction, about 55, that was built after the year 2000 and even more recent. In fact, the neighborhood just has that "shiny new" modern feeling there. They literally have a 0.0 vacancy rating.
When considering sales for comps it is important to bracket the square footage so that you get a more complete picture of how square footage affects the sale price of a home. Older homes may have unique features or craftsmanship that adds to their value, while newer homes might have modern conveniences and energy-efficient technologies.
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