| Imagine if you had the foresight 7 years ago to | | | | increase in home values. House prices are up over |
| invest heavily in Las Vegas, Phoenix, Miami and | | | | 6.7% over the last year, making the city one of the |
| Honolulu, and to get out 2 years ago. Each of those | | | | nation's top 10 metropolitan areas in terms of price |
| markets appreciated over 100% in a 5 year period. | | | | appreciation according to the Office of Federal |
| Many savvy investors made enough money in those | | | | Housing Enterprise Oversight (OFHEO). |
| markets in just 5 years that they never have to | | | | As of April 2008 the housing inventory in Mobile was |
| work again. Now, instead of waking up with that 7 | | | | 8.5 months worth of homes -- a healthy supply for a |
| am alarm clock, many of them softly awaken by the | | | | growing market. The housing inventory represents |
| warm breeze off the ocean blowing through their | | | | the number of months it would take to deplete the |
| open window. | | | | homes for sale given the current sales activity. |
| Mobile, Alabama (pronounced 'moe beel') is a city | | | | Additionally, the average days-on-market (DOM) for |
| located in southwest Alabama at the mouth of the | | | | existing homes sales in April was 82 days, a 17% |
| Mobile River. Spanning about 38 miles on the north | | | | increase over the same month last year. |
| shore of Mobile Bay, it was the city held by the | | | | As a point of interest, foreclosure filings across |
| French, British, and Spanish until it was seized by U.S. | | | | Alabama fell nearly 20% in March over the previous |
| forces in 1813. | | | | year, bucking the national trend and suggesting more |
| Today, Mobile, Alabama is one of the country's | | | | borrowers are paying their mortgages on time. |
| hottest growth markets. Any real estate investor | | | | EMPLOYMENT |
| looking for a market with a solid economic foundation | | | | Employment is a critical factor to the short and long |
| and strong appreciation potential will find it here. | | | | term stability and growth of any real estate market. |
| According to a new research forecast by Moody's | | | | According to Business 2.0 and CNN's Money Magazine, |
| Economy.com, Mobile County will have the fastest | | | | "Mobile is emerging as the South's next boomtown |
| growing economy over the next five years among all | | | | and a magnet for megaprojects". |
| 363 American metropolitan areas, growing over 34% | | | | Mobile's total non-farm employment has increased |
| from 2007 through 2012. | | | | steadily over the last three years. 2005 recorded a |
| Three major contributors to this massive growth are | | | | 3.2% increase followed by another 2.2% and 2.0% |
| the $3.7 billion ThyssenKrupp AG steel mill, Austal | | | | increase each year thereafter. Job growth in 2008 is |
| USA's continued growth in shipbuilding, and the | | | | expected to reach 2.57% with an additional 27% |
| recently announced Northrop Grumman/EADS airplane | | | | growth predicted over the next ten years. Nationally, |
| assembly plants. Additionally, the State's docks are | | | | job growth is expected to reach 1.4% this year and |
| undergoing the largest expansion in its history by | | | | 11.9% over the next decade. |
| expanding its container processing and storage facility | | | | The total labor force increased steadily from 176,275 |
| and increasing container storage at the docks by | | | | in 2004 to 184,696 in 2007 -- an increase of 8,421 |
| over 1,000%. | | | | workers (or 4.6%). This trend appears to have the |
| Alabama currently ranks 2nd in the nation behind | | | | momentum to continue for several more years -- a |
| Detroit in automobile output, but with recent | | | | good economic signal when looking for a market to |
| expansions the state will surpass Detroit in early 2009 | | | | invest in. |
| and become the largest builder of automobiles in | | | | Tourism is set to skyrocket with a $600 million |
| North America. | | | | NASCAR race track and entertainment complex ( |
| Don Epley, a business professor from the University | | | | breaking ground this year. The "Dale Earnhardt Jr. |
| of South Alabama, who projects local economic | | | | Speedway" will be fully operational by 2010 and will |
| growth as part of his focus on real estate markets, | | | | also increase employment and spin-off jobs. |
| has projected that Mobile County will grow between | | | | Mobile's unemployment rate as of April 2008 was a |
| 5.5% and 6% in 2008. He cautions that it's difficult to | | | | mere 3.5%, similar to its 2007 unemployment rate of |
| see too far into the future with external factors like | | | | 3.58% and 3.64% in 2006. Alabama tied Kansas for |
| energy prices dragging down local economies. | | | | the 17th lowest unemployment rate in the nation. |
| However, he said that sustained growth of 6% a | | | | Nationally, the average unemployment rate was 4.8% |
| year is possible with the industrial expansions in the | | | | as of April 2008. |
| area. | | | | SUMMARY |
| HOUSING MARKET | | | | Unlike the stock market, local real estate markets |
| The residential real estate market is booming. In | | | | usually move in slow, predictable cycles. Appreciation |
| 2007, Mobile was ranked by as the "Seventh | | | | is not luck or magic, it correlates closely with |
| Fastest-Growing Housing Marketing in the Country." | | | | economic development and population growth in a |
| Homes in the Mobile Bay area have appreciated | | | | local area. |
| between 5% and 8% annually over the last 5 years. | | | | So, if you missed out on Las Vegas, Phoenix, and |
| Mobile appreciated at an average of 6.6% over the | | | | Miami (or if you rode those waves and know what |
| past three years, except for the period after | | | | it's all about), you have another opportunity to invest |
| Hurricane Katrina in August 2005 when the | | | | in Mobile, Alabama, ranked by Moody's and Forbes as |
| appreciation rate hit 18% to 20%, according to Don | | | | the #1 market in the country for economic growth |
| Epley. | | | | between 2008-2012. |
| In the first quarter of 2008 Mobile had a 1.63% | | | | |