Though the state’s housing market is stagnant, there is good news on the horizon for potential homeowners, according to the Alabama Association of Realtors.
“While Alabama’s housing market remains down overall, we have witnessed growth in key areas in recent months,” said association President Senia Johnson. “As we go into 2024, it is important that buyers and sellers closely monitor the potential rebound that economists are anticipating.”
CEO Jeremy Walker said a more affordable housing market is coming in 2024.
“We are optimistic for the rate cuts potentially coming in 2024,” said Walker. “Decreased rates would stimulate economic activity across our state, significantly benefiting our housing market while spurring increased construction of new housing.”
The Federal Reserve has said that there is the possibility of rate cuts in 2024, with four potential quarter-point reductions being discussed. Since maintaining a steady fed funds rate target, the Reserve has laid the foundation for a continued decline in average 30-year mortgage rates. By late November, rates dropped to 7.22% and have continued to fall throughout December to 6.95%.
The report also showed that the amount of active listings within Alabama continued to increase for the eighth month in a row in November, recording 15,055 listings. That number represents a 17.4% annual increase, the highest level recorded post-COVID.
Austen Shipley is a staff writer for Yellowhammer News.
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