Foley is one of the fastest-growing cities in the state of Alabama. Its suburban feel, affordability, and low cost of living attract many interested homebuyers to acquire various real estate properties in different Foley neighborhoods.
However, the past years have been a challenge for everyone in real estate, including the entire Alabama area, where realtors have dealt with reluctant sellers, very low inventories, and bidding wars.
There’s also much talk about a housing crash coming soon, and many investors are still determining where the market currently stands and how it will be in the coming years. Here is the 2023 housing market forecast that’ll help you plan when purchasing or selling a property.
Foley, AL Housing Market Forecast – Current Data & 2023 Predictions
Current Housing Market in Foley, AL
The housing prices are starting to climb in Foley, AL, as more people consider the state of Alabama, particularly the Daphne-Fairhope-Foley area, to relocate, especially since Foley is the hub of recreational activities.
Although the city is still one of the most affordable areas in Alabama, the high demand for homes causes an increase in housing prices, with the median value growing by 12.3%.
From December 2019 to December 2022, the average price of houses in Foley, AL increased by 55%. The most dramatic increase appeared between 2020 and 2021 by 32%, even though Foley’s average prices have been stable since July 2022.
With the start of 2023, Foley shows a housing inventory of 453 compared to about two and a half times what it was in spring or back in February 2022, with an average list price of $362,352 and a median list price of $279,185.
On average, homes in Foley, AL sell with average days on the market equivalent to 83 days. Looking at these numbers, the real estate market of Foley is shifting back toward a balanced market, which is good because the increases that occurred are not sustainable. A regular market has about 3 to 6 months of inventory.
Foley, AL Recently Sold Market Overview
The median price of recently sold properties during the previous six months in Foley, AL ranges from the lowest price of $60,000 to $1,625,000. 36535 zip code in Foley contains some of the most recently sold residences, equivalent to 524, or 3.81% of homes and properties recently sold.
Foley Housing Market Forecast 2023
Buyers and sellers are concerned about the housing market trend in 2023 due to rising mortgage rates and lower home inventory. Thus, many investors are still attempting to predict where the market will be this year. Here are some of the few 2023 housing market forecasts in Foley, AL.
Higher Mortgage Interest Rates
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Because of ongoing inflation, a potential recession, and geopolitical concerns, market specialists expect mortgage rates to continue to rise in Foley, AL. Participants in the financial markets anticipate a 175 to 200 basis point increase in the Fed’s target Fed funds rate from current levels. The typical mortgage rates for a 30-year loan and a 15-year loan will be approximately 8.50% and 7.70%, respectively.
Lower Home Sales
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Rising mortgage rates will undoubtedly have a significant impact on home sales in 2023 in Foley, AL. Higher loan rates could result in a 10% decline in home sales the following year, as observed in the current trend, and home listings won’t disappear off the market more quickly anymore.
Lower Home Prices
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Due to low housing inventory, some experts predict that prices of homes won’t drop in 2023, while others think that sellers will decrease their prices to present levels due to the higher interest rates. A potential decrease of 5% to 10% in home sale prices is also expected due to unaffordability as the Federal Reserve attempts to control inflation by increasing mortgage rates.
The entire state’s economy is firing on all cylinders due to several factors, such as the effect of the pandemic and current inflation, and the housing market is no exception.
For the 2023 housing market forecast, Foley will remain one of the most affordable neighborhoods in the Daphne-Fairhope-Foley metro area. Still, home buyers and sellers may expect an increase in home prices.
Nevertheless, prices of homes may or may not fall. Although they may decrease, they will not be at the same degree during the Great Recession. The mortgage rates will also continue to rise in 2023, so anticipate that the price for real estate properties will continuously increase this year.
Furthermore, with positive momentum showing no signs of slowing down, it is the best time to get into the Foley real estate market if you are in a stable financial position to buy a property.
If you have any inquiries or are interested in learning more about the Foley, Alabama forecast for the year 2023, please do not hesitate to call me anytime at 251-543-6094. Feel free to browse our website for other Real Estate Blogs.
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Frequently Asked Questions:
What are the most significant factors influencing the Foley, AL housing market?
Different factors may influence the housing market in Foley, AL, which include, but are not limited to, the following:
- Real estate is driven mainly by supply and demand. The changes in Foley’s demographics, which refer to the population’s composition based on age, race, gender, income, migration patterns, and growth in the area, can have a long-term impact on current housing market trends.
- Mortgage interest rates are also significant factors that influence the Foley, AL housing market. Interest rates and home prices share an inverse relationship. Once the interest rate decreases, the mortgage cost decreases, which increases demand for real estate, driving up prices.
- The housing market condition of Foley is affected by the economy’s overall health. Economic indicators include GDP, employment ratio, manufacturing activity, and cost of living, to name a few.
Which housing trends do you expect to see in Foley, AL over the next five years?
Due to inflation and low home inventory, home prices may remain the same for residential and commercial properties. People may be willing to purchase a home at the listed price, even with an expensive mortgage.
However, despite the current state of the real estate market in Alabama and the explosion of growth, Foley still has some of the best home prices in the county.
How will rising interest rates affect the Foley, AL housing market?
Interest rates play a vital role in the housing market, as they determine how much we will have to pay to borrow money to buy a property and influence real estate’s value.
That said, higher rates mean higher monthly mortgage payments, which result in less buying power for homebuyers. As a result, some homebuyers in Foley may only be able to afford a larger mortgage than they would have just months or years ago.
What is the most important thing for current and potential homeowners in Foley, AL to know?
The real estate market of Foley, AL is competitive. For buyers, study the current trend price in the area and identify what’s within your price range. Explore mortgage options, or help a real estate agent who will guide and help you throughout the process.
For sellers, it is essential to research the Foley area before you decide how much you will sell your home. Find comparative properties to see what are recently listed, how long they were on the market, and their final selling price.
Do you have any other advice for people interested in buying or selling a home in Foley, AL?
For interested buyers, it is crucial to research the current real estate market in Foley and be stable financially. You can also lower your debt-to-income ratio to easily qualify for a mortgage pre-approval when applying for a loan.
For sellers, choose how you want to sell your house, and listing on MLS is the best way to sell your property. Make sure as well to do the necessary repairs before listing your home.
Moreover, choosing a real estate agent or broker with local expertise to guide you through buying or selling your home will be advantageous.
A real estate agent can help buyers negotiate a purchase price and guide them through the legal requirements for completing your purchase or allow the seller to make a sale as quickly as possible for the highest possible price.