by December 2023 Alabama Economic and Real Estate Report Alabama home sales remain depressed amid continued market challenges, but will likely increase in the coming months as seasonal and economic changes approach, the Alabama Association of Realtors said. This suggests that sales may pick up.
““December traditionally sees a decline in home sales across the country due to holiday travel, gift buying, and various celebrations,” said Senia Johnson, 2024 President of Alabama REALTORS®. Masu. “However, Japan's economists point out that in the short term, three essential elements for a seasonal recovery await us: lower mortgage rates, abundant supply, and a spring thaw. ”
Mortgage interest rates, considered one of the most important factors in real estate sales, have fallen by more than 1 percentage point over the past two months, contributing significantly to boosting sales prices and supply, the AAR report said.
But economists expect mortgage rates to remain unchanged at the Federal Reserve's meeting later this month, and early indicators show Alabama home sales will decline again into January.
Sales prices in Alabama saw a significant increase in December, with the median sales price increasing 7.5% year-over-year to $223,982 and increasing by almost $9,000 month-over-month.Alabama'The average sales price in December was $1,520 higher than in November.
Housing supply levels remained unchanged compared to November 2023, with 3.8 months of supply. This figure is double the 1.9 months a year ago and remains the highest level for 2023.
The number of foreclosures in the state decreased by 9% in December from the previous month, marking the first time in three months that the number of foreclosures has decreased.
“Mortgage rates are at their lowest levels since May 2023, which is improving the home buying market,” said Jeremy Walker, CEO of Alabama Realtors®. “Indicators in our December report suggest positive changes are on the horizon, with a possible lower federal funds rate in late 2024 and a potential lowering of the housing market in 2023. It will further help reverse the trend. ”
The Alabama Economic Real Estate Report is published monthly and annually by the Alabama Association of Realtors.®. click here To view complete monthly and annual reports, go to
