of 2023 Annual Alabama Economic and Real Estate Report The state's housing market suffered in a year characterized by the National Association of Realtors as “the weakest year for existing home sales since 1995,” according to a report released Monday by the Alabama Association of Realtors. It is said that this reflects the nationwide sales decline trend. This is the largest annual decline since 2007. ”
“We all know that 2023 was a tough year for real estate across the country,” said Senia Johnson, 2024 President of Alabama REALTORS®. “Alabama, like the rest of the country, battled severe economic headwinds in the real estate market last year, but if current indicators continue to trend in the right direction, 2024 could provide some welcome relief. We are confident that it will.”
According to NAR, home sales across the country fell to their lowest level since 1995, with year-over-year sales declines in all four regions: the West, Midwest, South and Northeast.
Alabama was no exception, with home sales activity recording a significant annual decline of 30.5% in 2023, with a total of 76,258 sales recorded, the second consecutive year of declining sales.
Economists say the main factor is rising mortgage rates, with the average 30-year fixed rate above 6% for the year and above 7% for 17 consecutive weeks. The last time U.S. housing faced such affordability constraints was in 1984, when 30-year mortgage rates hovered around 14%, NAR reports. A combination of tough affordability for potential buyers and fixed interest rates for existing homeowners has pushed home sales to their lowest level in years.
Despite difficult market conditions for much of 2023, an upturn occurred in November, with the Federal Reserve's decision to maintain its federal funds rate target increasing mortgage lending in the final two months of the year. Interest rates have fallen.
“If mortgage rates continue to decline and Alabama maintains its historically strong economy and low unemployment rate, positive trends are likely to form in 2024,” Alabama REALTORS® said. CEO Jeremy Walker said. “As 2023 recedes, we look forward to a more positive future for Alabama's housing market in 2024.”
of Alabama Economic and Real Estate Report Published monthly and annually by the Alabama Association of Realtors.®. click here To view complete monthly and annual reports, go to
