According to the Alabama Association of Realtors, Alabama’s housing market in December saw home sales remain down. The organization did report, however, that a variety of approaching seasonal and economic changes suggest that sales are likely to pick up within the coming months.
“With holiday travel, gift buying, and various celebrations taking place, home sales across the nation traditionally decline during December,” said Senia Johnson, 2024 President of Alabama Realtors.
“But our economists have noted that the three essential ingredients for rebound – declining mortgage rates, ample supply, and the seasonal Spring weather thaw – await us in the near term.”
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Jeremy Walker, CEO of Alabama Realtors, said he also believes the state’s housing market is due to improve.
“Mortgage rates are at their lowest levels since May 2023 and the market for home buying is improving because of it,” said Walker. “Indicators from our December report suggest positive changes are on the horizon, and potential cuts to the fed funds rate later in 2024 would further help our housing market reverse the trends that occurred in 2023.”
According to the AAR report, mortgage rates have decreased by over a percentage point over the last two months, helping to bolster sales prices and supply within Alabama.
Sales prices in the state marked large increases in December, with the median sales price rising by 7.5% year-over-year to $223,982, and by almost $9,000 month-over-month. Alabama’s average sales price in December increased by $1,520 relative to November.
The housing supply levels remained constant compared to November 2023, at 3.8 months of supply. This number is double the 1.9 months available one year ago and remains at the highest level of 2023.
Also, December foreclosures decreased 9% month-over-month in the state, marking the first decrease in foreclosures in 3 months.
Austen Shipley is a staff writer for Yellowhammer News.
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