If you’re thinking about buying or selling a home, staying informed about market trends is key 🔑. Home prices are constantly shifting due to various economic factors, interest rates, and supply and demand. So, how does the real estate market in Shoals compare between 2024 and 2025? Let’s take a look!
📊 Home Prices: Then vs. Now
Here’s how home prices in the Shoals area have changed:
🏡 Average Home List Price in January 2024: $300,127
💲 Average Sold Price in January 2024: $273,985
🏡 Average Home List Home Price in January 2025: $292,332
💲 Average Sold Price in January 2025: $233,807
This change is largely influenced by factors such as interest rates, inventory levels, and buyer demand.
📉📈 What’s Causing This Shift?
Several factors contribute to home price changes, including:
🔹 Mortgage Rates – Interest rates have remained the same. the average 30-year fixed mortgage rate on Jan. 24′ was 6.96%, while in Jan. 25′ the average rate was 6.95%
🔹 Inventory Levels – Inventory levels have increased, meaning more competitive pricing. The inventory levels for Jan. 24′ were 236 active listings vs. Jan 25′ having 335 active listings.
🔹 Buyer Demand – Buyer demand is much higher,r with 129 homes selling in January 2024, while 160 homes have sold in January 2025
🔹 Local Economy – New construction inventory is less, resulting in a slower-paced market. With more new construction, there are higher home prices & more high-quality home sales.
🤔 What This Means for Buyers
If you’re thinking of buying a home in 2025, here’s what you should consider:
✅ More Inventory = More Choices & Negotiating Power →Compared to last year, there are more homes on the market. This means buyers have more options to find a home that meets their needs and can negotiate better terms, such as seller concessions, closing cost assistance, or even a lower price.
✅ Home Prices are More Favorable → With increased inventory, home prices have adjusted to be more buyer-friendly. Waiting could mean missing out on today’s more favorable pricing as demand picks up later in the year.
✅Lock in a home now & Refinance Later – Interest rates are currently at 6.95%, the same as they were in January 2024. Instead of waiting and risking higher home prices or rate fluctuations, buyers can purchase now and refinance if rates drop in the future.
🏡 What This Means for Sellers
If you’re a homeowner looking to sell in 2025, keep these points in mind:
✅ Less Competition Means More Buyer Attention → While inventory has increased compared to last year, it’s still not overwhelming. Sellers who list now can take advantage of motivated buyers before more homes hit the market, reducing competition and helping their homes stand out.
✅Home Prices Are Still Strong → Even though prices have adjusted, they remain favorable for sellers. Listing now allows sellers to capitalize on the current market before any shifts that could impact pricing or buyer demand.
✅ Serious Buyers Are in the Market Now → Buyers in the market today aren’t just browsing—they’re ready to make a move. With interest rates steady, many are looking to secure a home before prices rise again, leading to smoother and quicker transactions for sellers.
Are you curious about what’s happening in your neighborhood? Have you noticed home prices going up or down? I’d love to hear your thoughts! If you’re thinking about buying or selling, I’m happy to provide a free home value estimate or just chat about your options. No pressure—just real conversations about the market and what’s best for you. Feel free to send me a message anytime!
Contact here:
Jacob Glover | Realtor
NXCEL Realty
(256) 347-3356
jacob@nxcelrealty.com
