Welcome to the Alabama Residential Real Estate Index™ (AL RREI). The AL RREI measures residential real estate expectations for the upcoming quarter gathered from a broad group of professionals working in residential real estate and related fields. Six key indicators create a composite index of overall market conditions and an outlook for the state’s metropolitan areas. Through the survey, panelists can take the pulse of the state’s residential real estate market as well as compare their own forecasts to those of their peers.
Click the “Register for the Survey” button below to register and complete the Q3 2024 survey beginning June 1st, 2023. If you are a returning participant, you do not need to re-register.
The Alabama Residential Real Estate Index (AL RREI™) is a quarterly survey of residential brokers, sales agents, affiliates (loan officers, title agents, bankers, appraisers, etc.), and other industry professionals that measures market expectations for the upcoming quarter. An index value of 50 indicates a neutral outlook. Scores below 50 indicate a contractionary outlook while scores above 50 indicate an expansionary outlook.
In the Alabama Center for Real Estate’s survey, respondents in the Q2 2024 RREI™ registered an index score of 62.6. This means real estate professionals across the state have strong confidence that the statewide real estate market will expand during the second quarter. The Q2 index is even with the Q1 2024 RREI™, indicating strong confidence in accelerating market activity for the second consecutive quarter. All six components of the AL RREI™ registered scores above 50 for the second quarter, indicating expectations of an overall expansionary outlook for residential real estate.
Confidence in the residential real estate market varied by metro in the Q2 2024 survey.
Daphne-Fairhope-Foley recorded an RREI™ score of 65.5, the highest index among that state’s metro areas, indicating very strong confidence in an expansionary forecast. Panelists from the area are very strongly confident that overall market conditions in Alabama will improve and are strongly confident the United States market outlook will improve compared to the prior quarter. Daphne-Fairhope-Foley area panelists are strongly confident that interest rates will decrease and very strongly confident that sales and listings will increase in Q2. Area panelists are mildly confident about sales prices, expecting an increase in home sales prices compared to last quarter.
Birmingham-Hoover recorded the second-highest RREI™ index with 64.4, indicating strong confidence in an expansionary forecast. Panelists from the area are very strongly confident that overall market conditions in Alabama and the United States will improve in Q2 compared to the prior quarter. Birmingham area panelists are moderately confident that interest rates will decrease, very strongly confident that listings and sales will increase, and moderately confident that sales prices will increase in Q2 compared to the prior quarter.
Montgomery recorded the third-highest RREI™ index with 63.3, indicating strong confidence in an expansionary forecast. Panelists from the area are strongly confident that overall market conditions in Alabama and the United States will improve in Q2 compared to the prior quarter. Montgomery area panelists are moderately confident that interest rates will decrease, and sales prices will increase. However, panelists are very strongly confident that sales and listings will increase in Q2 compared to the prior quarter.
Tuscaloosa recorded the fourth-highest RREI™ index with 61.1, indicating strong confidence in an expansionary forecast. Panelists from the area are moderately confident that overall market conditions in Alabama and the United States will improve in Q2 compared to the prior quarter. Tuscaloosa area panelists are moderately confident that interest rates will decrease, strongly confident that sales and sales prices will increase, and are very strongly confident that listings will increase in Q2.
Huntsville recorded the fifth-highest RREI™ index with 60.6, indicating strong confidence in an expansionary forecast. Panelists from the area are strongly confident that overall market conditions in Alabama will improve in Q2 compared to the prior quarter, but mildly confident in improving US market conditions during the same period. Huntsville area panelists are moderately confident that interest rates will decrease, very strongly confident that sales will increase, strongly confident that listings will increase, and moderately confident that sales prices will increase in Q2 compared to the prior quarter.
Dothan recorded the sixth-highest RREI™ index with 57.9, indicating moderate confidence in an expansionary forecast. Panelists from the area are strongly confident that overall market conditions in Alabama will improve in Q2 compared to the prior quarter, but are neutral with the United States market, expecting a continuation of national market conditions from Q1 2024. Dothan area panelists are moderately confident that interest rates will decrease, and very strongly confident sales and listings will increase in Q2 compared to the prior quarter. However, area panelists are moderately confident that sales prices will decrease from Q1.
Second-quarter data was not available for Auburn-Opelika, Decatur, Mobile and Other MSAs as there were not enough survey participants to calculate a statistically significant score. However, ACRE projects that participation will increase for the third quarter survey.
This quarter, five of the six industry groupings had an index score above 50. Residential sales professionals had the highest score of the group with an index of 66.3, up 4.3 points from the Q1 survey and indicating very strong confidence in an expansionary forecast. This category expresses very strong confidence in increasing sales and listings, strong confidence in decreasing interest rates, and moderate confidence in increasing sales prices in Q2 compared to the prior quarter.
Residential brokers came in second with an index of 60.5, down 1.5 points from the prior quarter, indicating strong confidence in an expansionary forecast for the residential real estate market. This category expresses moderate confidence in decreasing interest rates and increasing sales prices. Participants are very strongly confident that listings will increase and strongly confident that sales will increase in Q2 compared to the prior quarter.
All other respondents placed third with an index of 59.7, up 1.4 points compared to the prior quarter, indicating strong confidence in an expansionary forecast. This category expects interest rates to remain unchanged from Q1 2024. This category is strongly confident in increasing sales and sales prices, and very strongly confident that listings will increase in Q2 compared to the prior quarter.
Affiliates, a group that includes loan officers, title agents, bankers, and appraisers, had the lowest index of the industry groupings with an index of 57.8. The Q2 index is up 1.7 points from the prior quarter, indicating moderate confidence in an expansionary forecast. Affiliates are mildly confident in decreasing interest rates, strongly confident in increasing sales, very strongly confident in an increase of listings, and mildly confident in a rise in home prices in Q2 compared to the prior quarter.
Data was not available for home builders as there were not enough responses to calculate a statistically significant index score. However, ACRE anticipates increased participation in the third quarter survey.
