The Alabama Association of REALTORS® released their March 2024 Economic and Real Estate Report, which indicates that while the state’s spring housing market is down year-over-year, there have been 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. This marked the second consecutive month of growth in home sales. 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. March listings were also up by 497 listings compared to February.
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 President of Alabama REALTORS® for 2024, stated that based on the report’s statistics, it appears that the spring selling season has begun and she hopes that the monthly increases in home sales, active listings and building permits will lead to an improvement in Alabama’s market overall.
Despite this promising outlook for continued sales into spring and summer, rising mortgage rates may pose a challenge for buyers and sellers alike. 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 while home sales likely hit their lowest point in January and are slowly increasing again