Alabama Housing Market Heads into Spring Season with Strong Numbers, But Rising Mortgage Rates Pose a Challenge

The Alabama Association of REALTORS® has released their March 2024 Economic and Real Estate Report, which indicates that the state’s spring housing market is experiencing growth. Despite a year-over-year decrease in home sales, there was a 5.6 percent increase in sales compared to the previous month, with 4,976 recorded in March. Additionally, there was an annual increase of 33.5 percent in active residential listings at the end of the month.

Building permits also showed an upward trend in February, with a monthly increase of 254 units and an annual increase of 51.2 percent. This trend is expected to continue as the year progresses. Senia Johnson, President of Alabama REALTORS® for 2024, believes that the statistics from the report suggest that the spring selling season is underway and hopes that continued growth in home sales, active listings, and building permits will lead to a turnaround in Alabama’s market.

While there are positive signs for Alabama’s housing market, rising mortgage rates may pose a challenge. 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 warns that although home sales are slowly increasing after hitting their lowest point in January, the consumer price index and mortgage rates are rising rapidly, posing a potential threat to recent increases in Alabama’s housing market.

The monthly and annual reports for the Alabama Economic and Real Estate Report can be accessed by clicking here on the website of the Alabama Association of REALTORS®.