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Foley, AL Housing Market Forecast – Current Data & 2023 Predictions

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Services for Real Estate Pros with InboundREM

Foley, Alabama, is rapidly becoming one of the state's most thriving suburban areas. Since many real estate properties in Foley are reasonably priced and offer a suburban lifestyle at a low cost of living, the city is constantly attracting new residents. Real estate agents nationwide, including those in the Alabama region, have had a tough time recently due to hesitant sellers, extremely low inventories, and bidding wars. Many people speculate that the housing market is about to crash, and many investors are still trying to assess the state of the market and its likely development over the next few years. If you're looking to buy or sell a home in 2023, this housing market forecast should help.

Current Housing Market in Foley, AL

As more people consider moving to Alabama seriously, specifically the Daphne-Fairhope-Foley area, home prices in Foley have risen. Housing prices have increased by 12.3% due to high demand, even though the city is still one of the most affordable in Alabama. House prices in Foley, on average, jumped 55% between December 2019 and December 2022. Even though Foley's average prices have been relatively stable since July 2022, the most significant price increase occurred between 2020 and 2021, at a rate of 32%. As of the first of the year 2023, the housing market in Foley displays a total of 453, which is roughly 1.5 times as many homes as were available in the spring, or in February of 2022, with an average list price of $362,352 and a median list price of $279,185. Foley, AL, real estate typically sells in 83 days on the market. As these numbers show, the Foley real estate market is returning to a more stable equilibrium, which is good news given that the recent price increases cannot be maintained. Inventory in a typical market ranges from three to six months.

Foley, AL Recently Sold Market Overview

Recent home sales in Foley, AL, have seen a median price range from $60,000 to $1,625,000 over the past six months. The 36535 zip code in Foley is home to some of the most recently sold homes in the area, including 524 or 3.81% of all homes and properties sold there.

Foley Housing Market Forecast 2023

Rising mortgage rates and falling inventory have buyers and sellers worried about the 2023 housing market. As a result, many traders are still trying to anticipate the market's direction for the rest of 2018. Here are a few limited housing market predictions for Foley, AL, in 2023.

Higher Mortgage Interest Rates - Market experts predict that mortgage rates in Foley, AL, will keep climbing due to persistent inflation, the possibility of a recession, and geopolitical concerns. Participants believe the Fed will raise the target Fed funds rate by 175 to 200 basis points from current levels. Rates for 15-year and 30-year mortgages are typically around 7.70% and 8.50%, respectively.

Lower Home Sales - A significant impact on home sales in Foley, AL, will likely occur in 2023 due to rising mortgage rates. A 10% drop in sales is possible the following year due to higher interest rates, and homes will sell slower once they're listed.

Lower Home Prices - Some experts predict home prices won't drop in 2023 due to low housing inventory, while others think sellers will reduce expenses to present levels due to higher interest rates. As the Federal Reserve attempts to control inflation by increasing mortgage rates, a 5-10% drop in home sale prices due to unaffordability is expected.

Wrap Up

Due to several factors, including the aftermath of the pandemic and current inflation, the housing market in this state is booming. According to projections for the Daphne-Fairhope-Foley metro area's housing market, Foley will continue to be one of the area's most inexpensive communities through 2023. Buyers and sellers of real estate should still anticipate price increases. Nonetheless, home prices could go down or up. Incomes may decrease, but less than during the Great Recession. As mortgage rates also rise in 2023, real estate prices are expected to increase steadily throughout the year. The real estate market in Foley is currently the best time to enter if you are in a stable financial position, and the positive momentum is not showing any signs of slowing down. Feel free to contact me anytime by dialing 251-543-6094 if you have any questions or want to hear more about the Foley, Alabama, forecast for 2023. To read more Real Estate Blogs, please feel free to explore the rest of our site. You can follow us here if you'd prefer to stay up-to-date on the Alabama real estate market via social media.

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https://inlandbayrealty.com/foley-al-housing-market-forecast

 

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POSTED BY:

 

Bruce N. Bankston

251-543-6094

316 S McKenzie St., Suite 176

Foley, AL 36535

https://inlandbayrealty.com/

 
Charles Ross - eXp Realty LLC
eXp Realty LLC Salina Group - Salina, KS
Love To Help People

Excellent information. Thank you for sharing. Have a wonderful day and a blessed week.

Apr 20, 2023 05:13 AM