The Alabama Association of Realtors has released this month's Alabama Economic and Real Estate Report. marchIt shows home sales across the state continue to increase month over month.

“The statistics from our latest report indicate that the spring selling season is underway,” said Senia Johnson, president of the Alabama Association of Realtors 2024. “We are hopeful that the monthly increases in home sales, active listings and building permits signal the beginning of an upturn in Alabama's market.”

The current increase in home sales has continued in March with 4,976 sales recorded statewide. This figure represents a 5.6% increase compared to February's figures and also marks a second consecutive month of continued growth in home sales in the Yellow Hammer State.

Additionally, Alabama saw an increase in residential listings at the end of March compared to a year ago, up 33.5% year over year. March listings also increased by 497 listings compared to February.

RELATED: Alabama home sales increase month-over-month in February

Building permits issued in February also increased by 254 compared to January, representing a 20.5% monthly increase and a 51.2% annual increase. Permits issued continue to trend upward since the start of the year.

The Alabama Association of Realtors emphasized that the state's housing market remains on track for increased sales through the spring.

But there are several obstacles to growth in the state's expanding housing market.

For example, the average interest rate on a 30-year fixed-rate mortgage fell overall through March, dropping 15 basis points over the month to 6.79% from 6.94%, but in the first two-and-a-half weeks of April, rates rose to 7.1%, according to the group.

Jeremy Walker, CEO of the Alabama Association of Realtors, spoke about the impact of the fee increase.

“We believe home sales hit their lowest point in January, which traditionally marks the bottom of the market, and have been slowly increasing since then,” Walker said. “But the consumer price index and mortgage rates are also rising rapidly, which could pose a real threat to Alabama's recent gains.'“Housing market”

Austin Shipley is a staff writer for Yellow Hammer News.