The Alabama Association of Realtors highlights that 80% of Alabama homeowners hold mortgage rates below 6%, which may explain some reluctance among buyers to enter the market.
Despite this, a persistent lack of available homes has challenged the real estate landscape. However, forecasts from national and local realtor groups suggest that 2025 will bring more homes to market, accompanied by rising prices.
North Alabama’s market strength
Realtor Mike Fleming of Engel & Volkers remains optimistic about North Alabama’s market in the coming year.
He emphasized the unique aspects of the region, saying, “Real estate is not just about houses; it’s about homes. In North Alabama, we take pride in understanding what’s happening here. With a thriving job market and active hiring, the real estate market will naturally follow suit.”
Shifting sentiment among buyers and sellers
Fleming acknowledged that potential buyers and sellers held off during the fall due to various concerns, including economic uncertainty and the election.
However, he believes those hesitations are fading as the new year begins. He sees the post-election period and a fresh start as motivating factors for renewed activity in the housing market.
Positive outlook for 2025
According to Fleming, now is an excellent time to consider buying or selling.
“With the New Year here, many concerns have been alleviated, and people are looking positively toward the future,” he said.
He anticipates that North Alabama’s strong job growth and economic activity will drive a vibrant real estate market in 2025.
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