According to the March 2024 Alabama Economic and Real Estate Report, released by the Alabama Association of REALTORS®, Alabama’s housing market is showing signs of recovery. Although home sales decreased year-over-year in March, they 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 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. 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 for Alabama’s housing market. The average 30-year fixed-rate mortgage decreased throughout March but has since increased to 7.1 percent in April. Senia Johnson, the 2024 President of Alabama REALTORS®, stated that the consumer price index and mortgage rates are rising rapidly, posing a potential threat to the recent increases in Alabama’s housing market. However, she remains optimistic about the future of the market and believes that continued growth is possible if consumers can navigate these challenges successfully
