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labama's real estate market may experience a boost in 2025 due to several factors. The Federal Reserve's recent interest rate cut, although slower than expected, could encourage homebuyers and sellers. Home sales in Alabama have shown signs of improvement, with a 5.9% increase in November compared to the previous month, according to the Alabama Association of Realtors.

    The median sales price across the state increased by $6,093 in November to $221,111, representing a 0.4% rise from October and a 2.8% increase from the same period last year. This marks the sixth consecutive month of year-over-year increases, indicating strong home values for sellers.

    Inventory levels are also showing positive signs, with residential supply up by significant margins in various regions, including Huntsville (62%), Birmingham (24%), Montgomery (27%), and Mobile (25%). New home building permits statewide have increased by over 10% compared to last year through November.

    Home foreclosures have decreased sharply, down 22.2% from a year ago and 3.7% from the previous month. The National Association of Realtors' 2024 Migration Trends Report ranked Alabama eighth in the nation for inbound moves, driven by families, retirees, and professionals seeking higher quality of life, low taxes, and economic opportunities.

    The combination of these factors suggests that 2025 may be a favorable year for Alabama's real estate market.