Cities with the Most Expensive Homes in the Birmingham Metro Area
Home prices across the United States continue to significantly inflate each year, with some cities commanding higher price tags than others. This trend is evident in the Birmingham metro area, where the value of typical homes has dramatically increased. Several factors contribute to the high costs, including location, size, age, and condition of the houses, among others.
Real Estate Market Overview
The average home value in the United States was recorded at $360,974 in June of this year, which is a 3.2% higher hike than the previous year. As of August 22, high mortgage rates have made monthly payments more expensive, with the 30-year fixed mortgage rate sitting at 6.46%. Housing affordability is a significant consideration for potential buyers in this real estate climate.
Cities with High Home Values
Investigating data from Zillow, a list has been compiled detailing the typical home values in several Birmingham metro area cities. The data includes the monthly typical home values starting from January 2018. Among the cities with the most expensive homes in the Arkansas metro area, the city of Mountain Brook, AL, topped the list, with a typical home value sitting at a whopping $795,135. The city experienced a 2.2% increase in the past year, with its five-year price change recorded at 42.0%.
Other Noteworthy Cities
Following closely, Indian Springs Village, AL came in second place with a typical house value of $562,896, recording a 7.2% increase over the last year and a 43.8% price increase over the last five years. Vestavia Hills and Homewood are also some of the cities with expensive homes, featuring typical home values of $561,758 and $517,152, respectively.
Housing Affordability
As the American dream of homeownership continues to be a significant pillar of life, location remains an important consideration. Given the increase in high-value homes, housing affordability has become a major factor for potential buyers. Along with high property values in these areas, it’s no surprise that potential homeowners are given something to think about when considering where to plant their roots.
City Rankings
Here’s a look at the cities with the most expensive homes in the Birmingham metro area and their respective home values:
- Mountain Brook, AL – $795,135
- Indian Springs Village, AL – $562,896
- Vestavia Hills, AL – $561,758
- Homewood, AL – $517,152
- Lake Purdy, AL – $472,439
- Hoover, AL – $423,589
- Trussville, AL – $387,146
- Chelsea, AL – $377,274
- Helena, AL – $356,118
- Wilsonville, AL – $343,124
Conclusion
Buying a home is indeed one of the most significant investments you can make in your life. Besides being a place to live, homeownership is an asset that can potentially rise tremendously in value. However, with home prices reaching record heights, it’s not surprising that affordability is a prime concern for many potential buyers. For those considering buying a home, it may be crucial to understand the trends in their desired city’s real estate market.
