2025 Housing Market Outlook from Local Broker

In the latest study by the Alabama Association of Realtors (AAR), they found that home sales in our state increased by 5.9% from October to November. That’s great news! It breaks a trend of three months of declining sales, although it’s still a 2.5% decrease from 2023. The total number of homes sold was 5,168.

Looking ahead to 2025, Gina and Jeremy Miller, co-owners of LocAL Realty, are optimistic about the housing market. They attribute the recent spike in home sales to adjustments made by mortgage banks in anticipation of upcoming Fed rate cuts. With another two rate cuts expected in the next year and tax refunds on the horizon, they’re hoping for a strong year ahead.

According to AAR, the median sales price for homes sold in November increased by $6,093, marking a 2.8% year-over-year rise. The Millers anticipate further price appreciation in the range of 2-6%, depending on the source.

For sellers, this means the value of your home could increase even more next year, which is fantastic news. On the other hand, for buyers, there are currently more homes on the market than there are people purchasing. It’s a buyer’s market!

When asked about the best time to buy a home in 2025, Gina Miller emphasized that it depends on the individual and their life circumstances. She advised focusing on affordability rather than interest rates, as your first home may not be your forever home. Building equity and taking steps towards your dream home are essential.

No matter where you are in the home buying process, the Millers stress the importance of finding a local lender you trust. Life can throw unexpected curveballs during the home buying process, so having a reliable partner is key.

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