According to the Alabama Association of Realtors, in Alabama housing market in december Home sales are still declining. However, the organization reported that approaching seasonal and economic changes suggest that sales are likely to pick up in the coming months.
“December traditionally sees a decline in home sales across the country due to holiday travel, gift buying, and various celebrations,” said Senia Johnson, 2024 president of Alabama Realtors.
“However, Japan's economists point out that in the short term, three essential elements for a seasonal recovery await us: lower mortgage rates, abundant supply, and a spring thaw. ”
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Jeremy Walker, CEO of Alabama Realtors, also said he believes the state's housing market will improve.
“Mortgage rates are at their lowest levels since May 2023, which has helped improve the home buying market,” Walker said. “Indicators in our December report suggest that positive changes are on the horizon, with a potential cut in the federal funds rate in late 2024 likely to push our nation's housing market into 2023. It will further help reverse the trends that have occurred in the past.”
Mortgage rates have fallen more than 1 percent in the past two months, contributing to higher sales prices and supply in Alabama, according to the AAR report.
Sales prices in the state rose significantly in December, with the median sales price increasing 7.5% year-over-year to $223,982 and almost $9,000 month-over-month. The average sales price in Alabama increased $1,520 in December compared to November.
Housing supply levels remained unchanged compared to November 2023, with 3.8 months of supply. This figure is double the 1.9 months a year ago and remains the highest level for 2023.
Additionally, the number of foreclosures in the state decreased by 9% in December from the previous month, marking the first time in three months that the number of foreclosures has decreased.
Austin Shipley is a staff writer at Yellowhammer News.
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