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According to new data in the November 2023 Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS®, Alabama’s housing market continues to stagnate in what is traditionally the slowest season of the year for home sales, but positive indicators, such as steadily declining interest and inflation rates, offer strong hope for a rebound in the coming year.
“While Alabama’s housing market remains down overall, we have witnessed growth in key areas in recent months,” said Senia Johnson, 2024 President of Alabama REALTORS®. “As we go into 2024, it is important that buyers and sellers closely monitor the potential rebound that economists are anticipating.”
Since maintaining a steady fed funds rate target, the Federal Reserve has paved the way for a continued decline in average 30-year mortgage rates. By late November, rates dropped to 7.22 percent and have continued to fall throughout December to 6.95 percent.
The Federal Reserve has signaled the possibility of rate cuts in 2024, with four potential quarter-point reductions being discussed. Cuts to the fed funds rate target would help bring relief to the housing market and spur sales activity.
“We are optimistic for the rate cuts potentially coming in 2024,” said Jeremy Walker, CEO of Alabama REALTORS®. “Decreased rates would stimulate economic activity across our state, significantly benefiting our housing market while spurring increased construction of new housing.”
November’s economic report noted that active listings in Alabama continued to increase for the eighth month in a row in November, recording 15,055 listings. This figure is the highest level seen post pandemic and represents a 17.4 percent annual increase.
On trend, housing supply levels reached 3.8 months of supply in November, almost doubling the 2 months available one year ago. Supply has continued to grow throughout the year and has reached highs not seen since 2018.
Alabama’s median sales price also increased in November following two months of decline to $215,018 and is projected to continue climbing throughout December.
