Gulf Coast homebuilders to focus on lower-end houses

Baldwin County building starts in July were up by 14.5 percent from June, but still down 23.7 percent when compared with July 2008, according to the Alabama Real Estate Center at the University of Alabama in Tuscaloosa.

Getting rid of inventory is the biggest challenge for builders in the current economy, according to the new construction report, which says there are more than 5,000 new homes on the market statewide. And some local builders predict it will be a long, cold winter before the market improves.

The $150,000 to $250,000 price range is the most active in sales in Mobile and Baldwin counties, according to Realtors.

Economic downturn forces Gulf Coast homebuilders to focus on lower-end houses