According to the March 2024 Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS®, Alabama’s spring housing market remains down year-over-year, but has seen increases in key areas month-over-month.
In March, the increase in home sales persisted, with 4,976 sales recorded, marking a 5.6% uptick compared to the February’s 4,710 sales. This also marks the second consecutive month of growth in home sales.
Alabama had more active residential listings at the end of March compared to one year ago, representing a 33.5% annual increase. March listings were also up by 497 listings compared to February.
Building permits increased by 254 units in February relative to January. This represents a 20.5% monthly increase and an increase of 51.2% annually. As expected, permits are continuing to trend upward to start the year.
“Statistics from our latest report offer every indication that the spring selling season is under way,” said Senia Johnson, 2024 President of Alabama REALTORS®. “We remain hopeful that the monthly increases in home sales, active listings and building permits signal the beginning of a turnaround in Alabama’s market.”
Though Alabama’s housing market is poised for continued sales increases this spring and into the start of summer, increasing mortgage rates present a potential headwind.
The average 30-year fixed-rate mortgage generally declined through March, decreasing by 15 basis points throughout the month from 6.94% to 6.79%, but rates have increased through the first two and a half weeks of April to 7.1%.
“We believe home sales hit their lowest point in January, a period that traditionally represents the bottom of the market, and are slowly increasing,” said Alabama REALTORS® CEO Jeremy Walker. “However, both the consumer price index and mortgage rates have also been increasing quickly and may pose a real threat to the recent increases in Alabama’s housing market.”
The Alabama Economic and Real Estate Report is published monthly and annually by the Alabama Association of REALTORS®. Click here to view the full monthly and annual reports.