Tennessee Valley housing market shows promise after challenging 2023

HUNTSVILLE – One story the numbers tell about the 2023 housing market not just in the Tennessee Valley but nationwide – it was a challenging year.

Mortgage rates hit a two-decade high, housing inventory remained at historic lows, and sales prices continued to climb nationwide, putting homeownership out of reach for many consumers.

According to the ValleyMLS Annual Report, sellers in North Alabama received, on average, 98.3% of their list price at sale, a decrease of 1.6% from 2022.

Housing affordability remained a top concern for homebuyers: mortgage payments are up significantly from 2022, with some homeowners now spending more than 30 percent of their income on their monthly payments.

As a result, sales of previously owned homes remained sluggish throughout the year, while the shortage of existing home inventory helped sales of new residential homes steadily increase from last year.

With inflation showing signs of improvement, the Federal Reserve recently announced plans to make at least three cuts to their benchmark rate this year. Mortgage rates have been dropping in recent months, which should help bring buyers and sellers back to the market and could lead to an uptick in home sales and housing supply.

“Homebuyers should always check ValleyMLS.com for the most up-to-date listings and comprehensive data on homes for sale across North Alabama. When you’re ready to begin your search, consult a Realtor and a local lender,” HAAR CEO Kurtis Krueger said in a released statement. “Realtors guide homebuyers through every step of the process, up to the transaction, from contract to closing, and provide crucial counsel to the most significant investment their client will make in their lives.”

The ValleyMLS.com coverage area comprises Madison, Morgan, Lawrence, Limestone, Dekalb, Etowah, Cherokee, Jackson and Marshall counties.

The annual report can be found here. The Fast Stat from December can be viewed here and on HAAR’s Facebook page.