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Graphic by Melanie Viering
Source: Greater Alabama MLS
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Graphic by Melanie Viering
Source: Greater Alabama MLS
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Graphic by Melanie Viering
Source: Greater Alabama MLS
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Graphic by Melanie Viering
Source: Greater Alabama MLS
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Graphic by Melanie Viering
Source: Greater Alabama MLS
Home sales in Homewood continued a five-year decline in 2024, dropping 10% from 300 sales to 270, statistics from the Greater Alabama Multiple Listing Service show.
It’s indicative of the tough year in the real estate industry as the inventory of homes for sale remained small, interest rates stayed high, lenders tightened credit requirements, and some real estate agents scrambled for customers.
Thirty-year fixed mortgage rates hovered between 6% and 7% for most of the year, and even though people kept predicting rates would drop below 6%, they bounced back above 7% toward the end of the year, according to Freddie Mac.
More than half of mortgage holders have interest rates below 4%, and more than 20% have rates below 3%, according to Realtor.com. That dynamic convinced many people to stay put and not sell their homes because a new mortgage would cause their monthly payments to rise significantly, said Guy Bradley, a Realtor with LAH who has been in the business for 20 years and was one of the top five producers in Homewood for 2024.
“It’s been tough for Realtors and lenders the past two to 2½ years,” Bradley said.
Historically, there have been 130 to 210 active listings at any given time in Homewood, but in the past couple of years, listings have been around 20 to 35, he said.
Jane Huston Crommelin, a Realtor with Ray & Poynor, said that while the high-end market and first-time homebuyer market have been selling, the middle market has been sluggish. A lot of people seem to think 6% interest rates are high, but historically they’re not, she said.
“If you wait to buy, you’re wasting money,” she said. “It’s only going to get more expensive.”
She encourages people to go ahead and buy and refinance later if rates drop significantly.
So far, 2025 is off to a great start, Bradley said. He’s hoping people have come to terms with rates between 6% and 7% and are deciding to get back in the market, he said. If they’re waiting for rates to drop significantly more, they could be waiting a long time, he said.
Homewood is still a desirable market, with average prices increasing 10% in 2024 from $518,359 to $570,579. Average home prices are up $171,000 (43%) since 2019, MLS statistics show. There were only 10 new homes sold in Homewood in 2024, and the average price of those was $1,049,345.
One of the most popular communities in Homewood for homebuyers is Edgewood, but “West Homewood really has been hopping lately,” Crommelin said. The area between Hollywood and Brookwood Village has also picked up steam, with many people renovating homes there, she said. Some are choosing to renovate instead of moving, while others are tearing down and building new homes, as they have been doing in Edgewood, she said.
“People like where they live, so they renovate where they are,” she said. “You get used to your dirt. Sometimes it’s just hard to change.”
Crommelin said she expects rates to dip slightly in 2025.
“If they would just give us a little movement, it would be helpful,” she said.
