Photo credit: Special to ACRE
Auburn among top small cities for real estate: Local agent says this is why
Nonet Reese, Three Sixty Real Estate
In March 2017, Auburn was ranked the fourth top small city for real estate, tied with the city of Pharr, Texas, according to the website SmartAsset.
The results were measured off of factors such as demand for housing, change in median home value, change in median income and the difference between population change and housing unit change for each city.
While Auburn is well known for being home to Auburn University, Three Sixty Real Estate Agent, Nonet Reese, says the university is not the only contributor to the city’s increasing value.
“Our public schools continue to be nationally recognized and our industry allows for diversity in our area,” Reese said. “We have successful auto, motor, aviation and plastic product production companies in Auburn and in addition we sit right between Hyundai and Kia. So we have multiple suppliers who locate here to utilize the school system and can still be within an interstate’s drive to work.”
Lee County's residential sales grew 11.2 percent in 2016 compared to 2015.
Reese says that from a public school system perspective, Auburn has grown astronomically.
“We just had our summary from the city council supervisor,” Reese said. “For the foreseeable future, we will have no high school graduating class with less than 600 students across the 8,500 students in our current school system.”
Reese also explains that Auburn’s successful school systems are greatly contributing to the city’s success, so much so that people are beginning to move to Auburn even if they work elsewhere.
“There are a lot of people who move here not because they have gotten a job here, but because they want to move their families here for the pace of life that Auburn offers.”
“The main income provider for a family may not work in Auburn all the time. We have men and women who live here but work in Montgomery or travel often to and from Atlanta for business. These men and women allow their families to live the life they want in Auburn, but then they are bringing their income back with them and spending it here,” Reese said.
Lee County continued to be one of Alabama's healthiest markets during 2016, with a 3.6 Inventory-to-sales ratio (restate, at 2016's pace, it would take 3.6 months for the market to absorb the current inventory).
While young families are flourishing to Auburn, they are not the only demographic drawn to the city’s community-centered environment.
“We have activities for any age group in any realm, both physical and educational,” Reese said. “We have a great parks and recreation department that puts on all sort of activities that everyone can get along with.”
Reese says that the largest growing population in Auburn is currently retirees.
“Whether its golf or being an alumni, whatever is bringing them there, retirees are one of our largest growing demographics,” she said.
As more people make the move to Auburn, Reese says bidding wars are becoming an average day-to-day experience for the city’s realtors.
“We are seeing multiple offers executed at above asking price, but not in an out of touch with reality percentage,” she said.
Auburn’s population grew seven percent higher than their inventory from 2011-2015, which is causing buyers seeking resale homes under $450,000 to go over any kind of listed price, according to Reese.
“We have inventory of homes prices above $450,000 which are moving quickly, but more and more people are becoming interested in new construction,” she said.
The median sales price for homes in Lee County during 2016 rose 12 percent from 2015 to $204,567.
While Auburn is home to much more than just students, Reese says that Auburn University continues to be the city’s largest employer and is a positive influence on its economy.
“The Co-Op and internship programs with Auburn University allow our industries and the university to partner together on projects,” Reese said. “If we need research done or there’s a new adventure that the university or industry wants to get done, it can be done, and its right here in our backyard.”