Birmingham Area Homebuilders – Poised for a Comeback
Birmingham area homebuilders may be poised for a comeback this year. – by Dawn Kent, Birmingham News
Metro Birmingham homebuilders could be poised for a comeback in 2011, after a steep market downturn left most of the industry battered.
During a two-week period in January, more than 50 building permits were issued for speculative single-family homes in area neighborhoods, according to data collected by Southern Exposure, a Huntsville firm that tracks permit activity. That’s up from roughly 10 a week in recent months.
The sharp uptick might be the result of seasonal factors, said Bart Fletcher, executive officer of the Greater Birmingham Association of Home Builders.
If builders want to have houses ready for the typically busy spring buying season, now is the time they start working on them, he said.
But, Fletcher added, “I think builders are more optimistic about 2011. I think that we really believe we have seen the bottom. A lot of builders have not built anything new for quite some time. We’ve worked through the inventory.”
The original article in its entirety from Dawn Kent at the Birmingham News can be found at the AL.com blog.
Confidence grows among Ala. real estate execs
This past weekend Lauren Cooper of the Birmingham Business Journal wrote about this quarter’s release of The University of Alabama’s “Alabama Real Estate Confidence Index”. According to the article, the index shows significant increases in real estate expectations in Birmingham and other North Central regions of the state.
This is promising news for the future of new home sales in Birmingham over the coming months. To read the original article posted on Bizjournals.com/Birmingham, please follow the link.
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Confidence Grows Among Alabama Real Estate Execs
Confidence is up among the state’s real estate professionals, particularly in the central Alabama area, according the Alabama Center for Real Estate.
The University of Alabama center released Friday its Alabama Real Estate Confidence Index for the first quarter of 2011, with all indicators showing improvement.
ACRE said the overall index score was 47, which was up from 43 the previous quarter but below the mid-level mark of 50, indicating no change expected. The score includes both residential and commercial real estate expectations.
The North Central region, which includes Tuscaloosa, Birmingham and Anniston, had the most significant increase on the index of the four regions of the state, jumping 10 points to 56. However, inventory, pricing and credit were still below the 50 mark.
ACRE said the state’s commercial market participants were more optimistic in their scoring for the first quarter. That index rose 9 points to 59 overall and to 55 for sales expectations. But pricing remained weak at 40.
ACRE’s confidence index is compiled from a survey of nearly 600 statewide real estate professionals.
New Birmingham Beltline to bring $7bil
The proposed 53 mile beltline to the north of Birmingham has been given great expectations for the economic future of the city. New Birmingham homes and new home communities, including those designed and constructed by Thornton Homes, may hopefully see increases in value over the coming years if the beltline lives up to these expectations. Below is an article from Jeremy Gray at the Birmingham News posted on Al.com which details the project and its estimated economic return. As stated, the project could generate 70,000 jobs over the 21 year timeline and bring in $2billion annually after it is completed, an economic injection certainly to be felt by the Birmingham homes for sale and new home communities in this part of the state.
I-422 to infuse billions in Birmingham area
The Northern Beltline will likely generate an economic impact of more than $7.1 billion during construction and $2 billion annually after it’s built, according to a report being unveiled this morning.
The study commissioned by the Coalition for Regional Transportation said that the nearly 53-mile interstate linking Interstate 20/59 in southwest Jefferson County to I-59 in northeast Jefferson County will create jobs, generate tax revenue and improve traffic safety.
The study, completed by Sam Addy of the University of Alabama Center for Business and Economic Research, shows that the Birmingham area should reap the vast majority of the benefits of the beltline’s expected economic impact.
Current plans call for the $3 billion construction of the beltline to be completed in 21 years. About 70,000 jobs would be created statewide during the construction phase. Of those construction jobs, approximately 33,525 would be in the Birmingham area, according to the executive summary of the study obtained by The Birmingham News.
A BBA spokesman declined to comment on the report prior to this morning’s presentation of the study.
After construction is complete, the beltline is expected to bring another 20,000 jobs each year statewide. Nearly 12,000 of those will be in Jefferson County alone.
Construction of the beltline is also expected to be a shot in the arm for residential and business growth over the next 30 years in the six-mile wide corridor adjacent to the beltline.
By 2040, the population of the beltline corridor is expected to increase 22.3 percent. The beltline is expected to bring 3.4 percent of that increase, or about 6,500 more people than would join the population without the beltline.
The beltline is expected to bring an additional 372 new businesses to the area, for an additional 4 percent commercial growth.
The study also examined the socioeconomic and environmental effects of the Northern Beltline, which will eventually be named Interstate 422.
“The highway will not unfairly or disproportionately affect minority and low-income populations,” the report states. “Instead it presents development opportunities that can benefit these groups.”
The beltline should improve access to jobs for low income residents. Future developments in the area of the beltline should include mixed income housing to prevent the displacement of lower income residents, the study suggested.
The interstate should also improve traffic safety, travel times and the overall air quality of the area near the beltline.
The findings presented in the study are conservative, the executive summary states, because it factors in income, sales and property taxes, but not occupational taxes and taxes on things such as alcoholic beverages, tobacco products and hotel and motel rooms.
Read the original article here.
Sketches of $70mil Westin Hotel Proposed in Birmingham
The developer for the proposed Westin Hotel project in downtown Birmingham has released new sketches of his vision for the impressive hotel. Thornton Homes is the proud developer and builder of many Birmingham new home communities, and projects like this both enhance our city and provide extra convenience for out-of-town friends and family of our residents. Below is the full article from Joseph D. Bryant of the Birmingham News, posted on AL.com:
An Atlanta developer has architectural sketches of the luxury Westin Hotel planned as part of a $70 million project near the Birmingham-Jefferson Convention Complex.
The sketches were prepared by Rabun Rasche Rector Reece Architects.
Developer Robert L. Schwartz, president of National Ventures Group, said he hopes to break ground on the hotel in November and open it in 2012.
In town Tuesday to attend a City Council meeting, Schwartz said his company would raise $13 million in private money to go along with $57 million in public financing for the project. The hotel would be managed by the BJCC, along with the Birmingham Sheraton. Both hotels would share staff and management, making the project more economical, Schwartz said.
“Birmingham residents will take pride in having a first-class hotel for their out-of-town guests,” Schwartz said.
Schwartz said he is certain the project will go as planned.
“We have been trying and will continue to try to meet with council, the BJCC board and the mayor’s office one-on-one, so we can answer whatever questions come to their minds,” he said. “Once we have this kind of meeting and the questions have been answered we’ll have a stronger support system.”
Read the original article here.
