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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 Vestavia Hills climbed 11% in 2024, but that didn’t mean a strong year for everyone in the housing industry.
In fact, it was a difficult year for many 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.
Leigh Cound, a Realtor based out of Keller Williams’ Vestavia Hills office, said this past fall was one of the slowest she has seen in years.
“Those last few months of 2024, it was almost like somebody turned the spigot off,” Cound said.
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.
As rates crept up, “a lot of buyers that had been actively seeking in the market really pulled back,” Cound said.
The election also played a big role in that, she said. Many buyers were afraid of the unknown, and while that always happens in an election year, last year was more intense, Cound said.
But 2025 is shaping up to be much better, she said. She’s already seeing signs of renewed interest, such as stronger consumer confidence and more listings by sellers.
“We’ve been busier the first two months of 2025 than probably we’ve been in the past two years,” Cound said.
She has seen a lot of first-time homebuyers who are tired of rising rental rates and understand the value of using their payments as an investment instead of paying $2,400 a month in rent and having nothing to show for it, she said. Of course, she recommends buyers consult with lenders or financial planners before jumping into the market.
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.
The number of homes sold in Vestavia Hills climbed from 610 in 2023 to 678 in 2024, according to statistics from the Greater Alabama Multiple Listing Service. That included a 22% jump in new home sales from 69 to 84 and a 10% increase in existing home sales from 541 to 594.
Of the new home sales, almost all were in Liberty Park, but the developers there have adapted to the market nicely, slowing down construction when sales dipped, Crommelin said.
“They don’t want to flood the market and damage their property values,” she said. “They also don’t want to get stuck with a lot of properties they’re sitting on.”
The area around Vestavia Country Club has also been a popular market, with people tearing down older homes and rebuilding bigger ones, she said.
Prices in Vestavia Hills have held up well, with the average price increasing 9% in 2024 to $613,260. That’s up 45% from $424,024 in 2019.
