Alabama’s Housing Market Continues to Grow Despite Potential Challenges
The March 2024 Alabama Economic and Real Estate Report, released by the Alabama Association of REALTORS®, shows that the state’s housing market is currently on an upward trend. While home sales decreased year-over-year, there were increases in key areas month-over-month. In March, home sales saw a 5.6 percent increase compared to the previous month, with 4,976 sales recorded. Additionally, there were more active residential listings in Alabama at the end of March compared to one year ago, representing a 33.5 percent annual increase.
Building permits in Alabama also showed a positive trend in February, with an increase of 254 units compared to January. This represents a 20.5 percent monthly increase and a 51.2 percent annual increase. This upward trend 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. However, rising mortgage rates may pose a challenge to this growth potential. The average 30-year fixed-rate mortgage decreased throughout March but has since increased to 7.1 percent in April.
Alabama REALTORS® CEO Jeremy Walker noted that while home sales likely hit their lowest point in January and are slowly increasing