Staying Strong During the "Housing Slump" for Shelby County

We have heard the news and we continue to hear the news that we are all in a housing slump. Like many real estate agents, I, too, do not necessarily agree with all that is being said. Like Gary Keller (Founder of Keller Williams Realty) said, all real estate is local and there is no national market.

Keeping that mind, let's first mention that comparisons in the Jefferson and Shelby County areas are all compared to 2006. That year, 2006, was the best year ever for our market and we are on track to have the second best year ever since we are down.

However, Shelby County is remaining strong and is proving to be one of the least affected areasin Alabama. How do we know? I was reading an article on al.com, Shelby County Least Affected by Year's Housing Slump, and the stats tell the story.

Housing permits for one tell one story. According to the article Shelby County has issued 1,428 building permits, down 18% from 2006 (our record year). The rest of the state's average is 23.9% down and the national average is 25% down. According to the article, "Much of Shelby County's growth is concentrated in commuter subdivisions and high-end neighborhoods in its northern crescent, bordering Jefferson County, and extending out on U.S. 280."

Another story can be told by foreclosures (2007's new f word). Shelby County has had 249 filings for foreclosure up 25% from last year, Jefferson County (the next door neighbor) has had a 90% increase, and Alabama, as a whole has had a 168% increase.

I think the market here can be best summed up by some word given us by Al Knight, a local developer, who said, "What is happening here does not compare to what is going on nationally... taking all that gloom and applying it here. It just doesn't fit."

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Stephen Wolfe & Jason Secor 

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