Archives for June 2024

No More Squatters in Alabama

Alabama Law Protecting Homeowners from Illegal Occupants Goes Into Effect

June 3, 2024

 

Earlier this year, Alabama lawmakers passed legislation aimed at protecting property owners from squatters. It goes into effect on Saturday, June 1.

The new law imposes severe penalties for individuals who illegally enter a residence they do not own and creates a new offense for causing $1,000 or more in damage to a property.

These crimes are classified as Class C felonies, punishable by one to ten years of imprisonment in Alabama. Additionally, producing a falsified document purporting to be a binding lease, deed, or other instrument of ownership or occupancy is classified as a Class A misdemeanor, carrying up to one year in jail and fines of up to $6,000.

The new law establishes a process, administered by local law enforcement, to quickly remove individuals who are illegally squatting a property owner’s dwelling without authorization.

Effective June 1, the law allows homeowners to file an affidavit with their local sheriff’s office to have an unauthorized occupant removed. The squatter will have 24 hours’ notice to vacate the property or face criminal charges, including potential burglary charges.

“It has been said that a person’s home is their castle, yet after a national rise in illegal occupations of homeowner’s private property, it is apparent that more must be done to halt criminals from commandeering people’s homes,” said Alabama Governor Kay Ivey when she signed the bill into law.

“The best dwelling for an illegal squatter is a jail cell, and we in state government should never rest easy until all Alabama homeowners’ rights are fully protected,” Ivey said.

The initial legislation was led by State Rep. Craig Lipscomb (R-Gadsden), who said the goal is to establish a swift process for local law enforcement to remove unauthorized occupants from properties in Alabama, which remains generally less of an issue than in other states.

Alabama’s new home sales rise 13% year-over-year in April

New home sales in Alabama increased 13.0% year-over-year from 710 to 802 closed transactions in April. Following seasonal trends, sales decreased 8.2% from March. New home sales are up 15.2% year-to-date.

Inventory: New home listings (3,528) increased 4.8% from March and 17.6% from one year ago. The number of new home listings in April increased significantly from recent years, rising 56.4% above the 5-year average.

At the current sales pace, all the active inventory on the market would sell in 4.4 months, up from 3.9 in March and 4.2 in April 2023. The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply.

Pricing: The median sales price for new construction in April was $342,839, an increase of 10.6% from March and 6.6% from one year ago.

The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

New homes sold in April averaged 63 days on the market (DOM), 7 days faster than one year ago.

National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 634,000 in April. This represents a 4.7% decrease from the revised March rate of 665,000 and is 7.7% below the April 2023 estimate of 687,000.

The median sales price for new homes ($433,500) decreased 1.4% from March but increased 3.9% from April 2023.

The supply of new homes was estimated at 474,000 listings (seasonally adjusted) in April, an increase of 3.5% from March and 13.1% from one year ago. Months of supply was 8.5 in April 2024, up from 7.0 one year ago.

The Alabama Center for Real Estate at The University of Alabama

The Alabama Real Estate Journal