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labama's housing market experienced a slowdown in December, with home sales and median sales prices declining. According to the Alabama Association of REALTORS' January 2025 report, the state saw 4,876 home sales, a 5.7% decrease from November and a 2.2% drop from the same period in 2023.
The average 30-year mortgage rate rose throughout December, increasing by 44 basis points to 7.04% by January 16, 2025. Economist David Hughes noted that this rapid increase may negatively impact sales, but also pointed out that lower competition and normalizing rates provide opportunities for buyers.
The median sales price across Alabama fell to $220,194, a 0.4% decrease from November and a 1.7% year-to-year drop. However, the state's active listings increased by 25.4% compared to last year, offering buyers more choices and flexibility in finding their ideal home.
The sold volume in Alabama was $1.16 billion in December, a slight increase of 0.09% from one year ago but a 6.5% decrease month-over-month. Home foreclosures decreased by 11.7% compared to 2023 but rose by 3.4% from November.
The report also noted that inflation rose 2.8% across the South in December, with Alabama's East South Central Division experiencing the highest inflation at 4.1%. The Alabama Economic and Real Estate Report is published monthly and annually by the Alabama Association of REALTORS.
