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labama's housing market showed signs of growth in January, with home sales increasing by 4.6% from December and 9.9% compared to the same period last year, according to a report released by the Alabama Association of REALTORS. The median sales price rose 4.2% from 2024 to $219,936, but remained essentially unchanged from December.

    Economist David Hughes noted that January's positive sales momentum may carry over into the early spring, and other indicators suggest a busier housing market ahead. However, home buyers should not expect interest rate relief from the Federal Reserve in the first half of the year.

    Foreclosures decreased by 14.3% from 2024 to 442 in January, but increased slightly from December. Sold volume reached $1.27 billion, a 19.8% annual increase and a 5.8% month-over-month rise. Active listings rose 27% year-over-year to 17,735, providing more options for home buyers.

    Preliminary February indicators suggest a potentially more active real estate market in early 2025 compared to last year. Economists believe that consumers are becoming accustomed to higher interest rates, with the average 30-year mortgage rate above 6.5% for 15 of the past 18 months. This could lead to increased demand and boost the housing market across Alabama.