The Alabama Association of REALTORS® has released the March 2024 Economic and Real Estate Report, indicating that the state’s spring housing market is showing signs of growth despite a year-over-year decline. In March, home sales saw a 5.6 percent increase compared to the previous month, with 4,976 sales recorded, marking 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.
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. 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.
Despite this positive outlook for continued sales growth 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