Alabama Associations of REALTORS®
From the ALABAMA POLITICAL REPORTER
Alabama Associations of Realtors (AAR) recently launched a statewide market statistics report, the Alabama Economic and Real Estate Report, with plans to publish monthly statewide data on the housing market in Alabama. Wednesday, AAR announced the release of the January 2023 issue.
Alabama’s statewide real estate market continued to slow down in January. Given the continued high inflation and stronger than expected unemployment numbers, the Federal Reserve increased the fed funds rate target by an additional 0.25 percent at its last meeting. Increases in the fed funds rate puts upward pressure on mortgage rates.
“Average home prices have declined but remain high relative to pre-pandemic levels affecting housing affordability,” said Alabama REALTORS® 2023 President RaJane Johnson. “The combination of higher mortgage rates and higher prices will likely continue to put downward pressure on the number of home sales in the state.”
“The economy is sending mixed signals, which may cause potential home buyers and sellers to sit on the sidelines while waiting to see whether there is a downturn that affects the housing market,” said Jeremy Walker, CEO of the Alabama Association of REALTORS®. “The slowdown in the Alabama housing market is likely to continue in the near term. Historically, sales in February are generally lower and sales activity starts to pick up in the spring each year.”