2024 vs 2023 Birmingham Real Estate Market: Predictions vs. Reality

Vikki Grodner

Predictions vs. Reality: What Actually Happened in the Birmingham Real Estate Market in 2024?

At the start of 2024, we shared insights from leading real estate experts, including a top economist who analyzes global and industry trends daily. While headlines were dominated by concerns about inflation and recession—both in the U.S. and worldwide— we were not predicting a possible market correction.


In fact, we predicted a modest (2.2%) increase in the value of homes nationwide:

So, how did the Birmingham Real Estate market perform in 2024?


Homes Purchased and Sold

  • 2024 Total Transactions: 40,570
  • 2023 Total Transactions: 40,921
    Result: The real estate market was basically flat.


The number of homes bought and sold in 2024 was consistent with 2023, highlighting the stability of the housing market despite economic uncertainties. This consistency demonstrates the enduring value of real estate as a reliable investment.


Total Sales Volume

  • 2024 Total Volume: $12.806 billion
  • 2023 Total Volume: $12.149 billion
    Result: A significant
    5.8% increase in real estate sales volume.


This increase in total sales volume reflects rising home values and continued demand for property investments. Buyers and sellers alike benefited from the appreciation in home prices, further solidifying real estate as a wealth-building tool.


Average Days on Market

  • 2024 Average Days on Market: 58 days
  • 2023 Average Days on Market: 54 days
    Result: Homes spent slightly longer on the market.


Homes sold in 2024 averaged 58 days on the market, a slight increase compared to 2023. This indicates a more balanced real estate market, offering buyers a bit more time to make informed decisions while still favoring sellers in key locations.


What’s Next for Real Estate in 2025?

Next month, we will share the 2025 Real Estate market insights provided by Keller Williams’ leading economists. We’ll dive into emerging trends, evolving market conditions, and strategies to maximize your real estate investments. Don’t miss this valuable resource to help you navigate the housing market with confidence.


April 24, 2025
As real estate continues to be one of the most effective tools for building and preserving wealth, many families are strategically using homeownership to transfer financial security to the next generation. By leveraging real estate investments, parents can provide both immediate support and long-term financial stability for their children. With home prices on the rise and tax laws evolving, proactive wealth transfer strategies can maximize benefits while minimizing tax burdens. Rather than waiting to pass on assets through inheritance, many parents are choosing to transfer wealth now by helping their children acquire property and enjoy it additional years of the benefit. Here’s how they’re making it happen. 1. Gifting a Home with a Structured Loan Forgiveness Plan A married couple can loan their single child $500,000 (or any other amount) to purchase a home, following the guidelines established by the IRS. This method allows parents to maintain financial control while gradually transferring wealth. Here’s how it works: The parents forgive an amount equal to the maximum annual gift tax exemption per parent ($19,000 in 2025) on the loan, totaling $38,000 per year. This process can be repeated annually until the full loan amount is forgiven. If the child is married, their spouse can also receive the same gift amount, effectively doubling the annual forgiveness to $76,000 per year. Over time, this strategy allows parents to gift a home while minimizing tax implications. 2. Buying a Home in Cash and Gifting It For parents who have the financial means, purchasing a home outright and gifting it to their child can be a tax-efficient way to transfer wealth. Here’s how it works: A married couple buys their child a $500,000 home in cash and gifts it to them. They file the required gift tax return, which falls under the lifetime gift and estate tax exclusion of $27.98 million per married couple (for 2025). This strategy allows for the immediate transfer of homeownership without requiring the child to take on a mortgage. Important Note: The lifetime gift and estate tax exclusion is set to drop significantly in 2026, from $13.99 million per individual ($27.98M per couple) to approximately $5 million per individual. This means high-net-worth families should consider making large gifts before the exemption decreases. Why Real Estate Is a Smart Wealth Transfer Strategy 1. Tax Advantages By structuring gifts properly, families can leverage the annual gift tax exclusion and lifetime gift tax exemption to pass on real estate with minimal tax consequences. Additionally, if the child holds onto the property, they may benefit from step-up in basis rules if the home is inherited later. 2. Long-Term Wealth Growth Real estate historically appreciates in value (on average 5% per year over the last 30 years), making it an excellent asset for wealth accumulation. By helping children buy a home now, families position them for financial growth through home equity. 3. Immediate Use & Stability Unlike other investments, real estate provides immediate utility—offering a stable place to live while also serving as a valuable financial asset. Start Building Generational Wealth with Real Estate Today As wealth transfer strategies evolve, real estate continues to be a cornerstone of financial planning for families. Whether through structured loans, gift exemptions, or outright purchases, helping your adult children acquire property now can be a powerful way to secure their financial future. If you're considering using real estate as a generational wealth transfer tool, contact The Hospitality Network Group at Keller Williams today. Our team specializes in guiding families through smart real estate investments that maximize long-term wealth potential. Hospitality Network Group at Keller Williams – Client focused . Performance driven The Hospitality Network Group at Keller Williams is honored to be part of a company that fosters a culture of excellence, empowering its agents to deliver unmatched service and expertise. This commitment to excellence is why Keller Williams agents consistently achieve results that set the standard in the industry. Whether you're buying, selling, or investing, our team is here to ensure your goals are not only met but exceeded. Trust the Hospitality Network Group at Keller Williams to guide you through every step of your real estate journey. Contact us today to learn how we can help you achieve your real estate dreams. Disclaimer: The information provided in this blog does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials available in this blog is for general informational purposes only. You should consult your own legal, financial, or tax advisor and verify all information to your satisfaction prior to taking any action.
March 4, 2025
2024 National Real Estate Market Recap & 2025 Outlooks – Insights from Our Industry Leader
By Vikki Grodner January 17, 2025
Tuscaloosa Real Estate Market Analysis: 2024 vs. 2023
By Vikki Grodner August 13, 2024
Tuscaloosa for the Win!  Named #1 College Town for Real Estate Investing.
By Hospitality Network Group at Keller Williams July 19, 2024
Birmingham, Alabama is one of the top go-to places for real estate investing. Here's why:
In my business, I have the opportunity to meet a lot of interesting people, but none as special as B
By written by Ken Grodner June 3, 2024
In my business, I have the opportunity to meet a lot of interesting people, but none as special as Birmingham’s Italian Stallion, Lou Scripa.
By Vikki Grodner April 22, 2024
Buying vs Renting: Why buying is a smart investment in towns with strong universities. Are you a parent considering buying or renting for your college student? Are you looking for a smarter way to invest in this accommodation, especially in towns with strong universities, like Tuscaloosa and Birmingham? Vikki and Ken Grodner from the Hospitality Network Group at Keller Williams are here to shed light on why buying real estate in Alabama is a game-changer.
By Ken Grodner, Co-owner, REALTOR® March 7, 2024
2024 Real Estate Market – Insights at from Industry Leaders
By Bre Humphres, Operations Manager December 7, 2023
Winter brings with it colder temperatures and a range of challenges for your home. However, with a few simple steps, you can prepare your home for the chilly weather and ensure a cozy and energy-efficient space throughout the season.
By Ken Grodner, REALTOR® & Lindsey Nance, Loan Officer November 7, 2023
During this high interest rate environment, our agents with the Hospitality Network Group at Keller Williams are helping our homebuyers reduce their monthly payment with temporary interest rate buydowns.
More Posts