March 2024 Alabama Housing Market Report: Slow Recovery or New Beginnings?

The March 2024 Alabama Economic and Real Estate Report, published by the Alabama Association of REALTORS®, shows that while the state’s spring housing market is still down year-over-year, there have been significant increases in key areas month-over-month. In March, home sales increased by 5.6 percent compared to the previous month, with a total of 4,976 sales recorded. This marks the second consecutive month of growth in home sales. Additionally, active residential listings at the end of March were up compared to last year, with a 33.5 percent annual increase.

March listings were also up by 497 compared to February. Building permits also saw an increase of 254 units in February compared to January, representing a 20.5 percent monthly increase and a 51.2 percent annual increase. These trends in active listings and building permits indicate that the spring selling season is underway in Alabama.

Senia Johnson, President of Alabama REALTORS® for 2024, stated that they remain hopeful that the monthly increases in home sales, active listings and building permits signal the beginning of a turnaround in Alabama’s market.” However, mortgage rates present a potential headwind as they have increased to 7.1 percent after declining in March.

Jeremy Walker CEO of Alabama REALTORS® noted that home sales hit their lowest point in January but are slowly increasing . However rising consumer prices and mortgage rates may pose a threat to the recent increases in Alabama’s housing market