Alabama’s housing market is showing signs of growth, according to the March 2024 Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS®. The report indicates that while home sales are down year-over-year, they have seen a 5.6 percent increase month-over-month, with 4,976 sales recorded in March. Additionally, there were more active residential listings at the end of March compared to one year ago, representing a 33.5 percent annual increase.
Building permits in Alabama increased by 254 units in February compared to January, showing a 20.5 percent monthly increase and a 51.2 percent annual increase. This upward trend in permits is expected to continue as the year progresses. Senia Johnson, the 2024 President of Alabama REALTORS®, stated that the statistics from the report suggest that the spring selling season is underway, with hope that the monthly increases in home sales, active listings, and building permits will lead to a turnaround in Alabama’s market.
Despite this positive outlook, rising mortgage rates may pose a challenge to continued growth in Alabama’s housing market. The average 30-year fixed-rate mortgage decreased throughout March but has since increased to 7.1 percent in April. Jeremy Walker, CEO of Alabama REALTORS® noted that home sales likely hit their lowest point in January and are slowly increasing but warned that consumer price index and mortgage rates are rapidly rising posing a potential threat to recent increases in Alabama’s housing market.
The full monthly and annual reports can be accessed here for more information on Alabama’s real estate market.
Alabama’s spring housing market is experiencing a downward trend year-over-year but has shown significant increases month-over-month according to new data released by the Alabama Association of REALTORS®. In March