The Alabama Association of REALTORS® released its March 2024 Economic and Real Estate Report, offering some encouraging signs for the state’s housing market. While year-over-year sales remain down, key areas saw positive movement month-over-month.
Spring Selling Season Underway
- Home sales continued to rise in March, with 4,976 recorded. This marks a 5.6% increase compared to February and the second consecutive month of growth.
- The number of active residential listings also climbed. Compared to March 2023, listings were up a significant 33.5%. They also increased by 497 listings from February.
- Building permits continued an upward trend, with a 20.5% increase in February compared to January. Year-over-year, permits are up a promising 51.2%.
“These statistics indicate the spring selling season is definitely underway,” said Senia Johnson, 2024 President of Alabama REALTORS®. “We’re hopeful that the rise in sales, listings, and permits signals a positive turnaround for Alabama’s market.”
Mortgage Rates: A Potential Headwind
Despite the positive trends, rising mortgage rates could create challenges. While the average 30-year fixed rate did decline slightly in March, it has climbed back up to 7.1% in the first half of April.
“We believe home sales bottomed out in January, traditionally a slow period,” stated Alabama REALTORS® CEO Jeremy Walker. “However, rising consumer prices and mortgage rates pose a potential threat to the recent gains.”
Looking Ahead
The Alabama Economic and Real Estate Report is a valuable resource published monthly and annually by the Alabama Association of REALTORS®. For a deeper dive into the data, you can access the full reports HERE.