REAL ESTATE SPOTLIGHT

Home sales slide in 2022 but demand still strong

By JON ANDERSON

The residential real estate market in Hoover slowed down in 2022 as interest rates climbed, but it’s still a very healthy market, and the prospects look good for the rest of 2023, Realtors and home builders say.

Total home closings in Hoover declined 18%, from 2,243 in 2021 to 1,844 in 2022, according to data from the Greater Alabama Multiple Listing Service.

That includes a 19% drop in sales of existing homes (from 1,858 in 2021 to 1,512 in 2022) and a 14% decline in new home sales (from 385 in 2021 to 332 in 2022), MLS data shows.

The biggest reason for the decline is the rise in interest rates, Realtors and builders say.

The average interest rate for a 30-year fixed mortgage had fallen below 3% after the COVID19 pandemic hit, dropping as low as 2.65% in January 2021. That was the lowest rate in history and encouraged many people to move or build because they could borrow money at a cheaper price and afford a bigger house.

See REAL ESTATE | pages A28-30

Surveillance video captures a robbery suspect entering the Walgreens pharmacy at 1801 Montgomery Highway on March 23, 2022. Photo courtesy of Hoover Police Department.