Montgomery, Alabama Real Estate Market Records First Annual Sales Increase but Also Foreclosures

The real estate market in the city of Montgomery and the state of Alabama, in general, is showing signs of recovery, with 6,136 homes sold statewide, indicating the first annual increase since January 2022. The Alabama Association of Realtors, conducting an analysis, shows that we are in the sixth consecutive month of increased home sales, a significant change from 2023, when sales plummeted more than 30% compared to 2022.

Senia Johnson, president of Alabama Realtors, states that Alabama’s real estate market is on the rise and that the figures from recent months clearly indicate this, highlighting that it is not just a couple of months of growth, but a clear trend of consecutive sales increases, which should continue to improve as interest rates keep falling.

But there was not only an increase in total sales volume with an 8.6% increase compared to the same month last year, there was also an increase in the sales price, reaching $233,216, a 2.3% increase compared to the same month in 2023. However, foreclosures also increased compared to the previous year, from 402 to 447 foreclosures, an 11.2% increase.

Speaking nationally, some experts consider that this turmoil in the U.S. real estate market was to be expected, as the recession seen since 2022 is a result of the increase in mortgage rates after the historic lows during the pandemic era.

Returning to Alabama, its Association of Realtors predicts continued improvement in the real estate market of the city of Montgomery and the state, forecasting a 9.5% sales increase for this current month, a 1% increase in the median sales price, and an 11.3% increase in sales volume. Additionally, foreclosures are also predicted to decrease by 1.1% this month, although the housing supply is projected to fall by 7.7% by the end of the month.

On the other hand, earlier this year, some Alabama lawmakers unsuccessfully attempted to increase the state’s housing supply by proposing $25 million for the Alabama Housing Trust Fund, aimed at supporting affordable housing for low-income residents.

Jeremy Walker, CEO of the AAR, says that despite the slight drop in housing supply and the increase in foreclosures last month, he views the outlook for the Montgomery and state real estate market very positively and expects its recovery to continue as interest rates keep falling. He concluded by saying, “The consistent growth over the past six months shows that the demand for homes in our state remains strong. As the market continues to strengthen, the state remains a prime location for both homebuyers and investors, especially with an increasingly favorable mortgage rate environment.”

Available Foreclosures:

Birmingham: 120 homes available.

Montgomery: 85 homes available.

Mobile: 95 homes available.

Huntsville: 147 homes available.

By Elías DaSilva | 14 de Noviembre de 2024.