Home sales in Alabama increased through January across the state and jumped by 9.9% from the same time last year, according to the latest monthly report published by the Alabama Association of Realtors.

The organization’s January analysis also showed that the median sales price in January of $219,936 reflected a 4.2% increase from 2024 but largely remained unchanged from December, falling by just 0.1%.

“January showed positive sales momentum, which may carry over into the early spring,” said David Hughes, economist at Alabama REALTORS®. “Additionally, there are other factors hinting that there may be a busier housing market through the early part of this year. However, home buyers should not anticipate any rate relief from the Federal Reserve during the first half of the year.”

The report indicated that Alabama’s sold volume was $1.27 billion in January, representing a 19.8% annual increase as well as a 5.8% month-over-month rise. The state’s 17,735 active listings at the end of January were up 27% year-over-year, indicating more options are available to start the year. Economists noted that preliminary February indicators suggest there may be a more active real estate market in early 2025 relative to 2024.

In Alabama, there were 442 home foreclosures in January representing a 14.3% decrease from 2024 but a slight 2.8% increase from December.

Based on the data, experts with the organization also believe home buyers are becoming acclimated to higher-than-usual interest rates as the average 30-year mortgage rate has remained above 6.5% for 15 of the last 18 months, and pent-up demand among consumers could soon help boost the housing market across Alabama.

Austen Shipley is the News Director for Yellowhammer News. You can follow him on X @ShipleyAusten