The tables have turned in Alabama. The national real estate recession has hit, and prices are sliding amid a slowing statewide economy. Even though Alabama has seen abundant growth for more than five years, the brakes are hitting housing markets with few exceptions.

It’s been slowing down for a while in most of Alabama real estate, but not all markets have hit a slump like much of the nation. In Mobile, near the Gulf of Mexico down south the market is active. Home sales are abundant as the community braces for growth with new businesses moving to the area.

The Mobile economy is the healthiest it has been since 1990. Housing prices are still on the rise and should remain that way through 2008 with forecast appreciation of 3.9% for the year.

Mobile has seen many new residents from Louisiana move to the area as a result of Hurricane Katrina. The micro market boom has topped that of World War II, which was the last real big boom for the region.

Birmingham’s housing market has slowed, but growing computer and biotechnology industries have attracted new residents. Birmingham has one of the largest medical research centers in the south with a growing economy partially boosted by a large banking center.

Construction of new homes has slowed in Birmingham after a building frenzy. Sales of homes across Birmingham have dropped, but the city still mustered its second best year for housing sales ever in 2007. Fallout from the credit crisis is beginning to affect the market and will have an increasing impact through the year.

Housing Predictor forecasts the market will see an increasing slow down in sales through 2008 and deflate an average of 6.5% for the year. That isn’t to say things will be all bad in Birmingham real estate. The market will just gently deflate before slow growth returns.

The Huntsville area is still adding jobs, and industrial construction should aid the area through the year. Northern Alabama is feeling the slowdown in residential sales, and Huntsville is forecast to deflate 6.7% in average values through the year.

In Montgomery, the state capital housing sales have cooled and the market won’t be setting any records in 2008 as prices deflate. The subprime problem has only begun to impact the community as sales level off.

A further slowdown will effect prices more towards the end of the year on the way to a forecast 7.1% drop in average housing values in 2008.

In little old Auburn, known best for its college football team, the housing market is beginning to slow and should see just about 4.5% deflation for the year.

Dothan is a place that many people drive through on the way to other parts of the Deep South. But the community, which is known for being the peanut capitol of the world producing half of all the peanuts in the U.S., is heavily dependent on agriculture. The housing boom ended long ago in Dothan and as the tables turn on the market prices are projected to deflate 5.9% for the year.

In Tuscaloosa the market has seen housing sales slow, dropping by a third from its peak with an average selling price of $158,000. The cool off will result in an average loss in values of 5.9% in 2008.

An auto manufacturing plant and other businesses moving to the area will keep Tuscaloosa’s economy growing, and home sales moving at least to some degree.