Keller Williams is expanding its Alabama footprint.

The residential and commercial real estate company has opened an office in Tuscaloosa, hoping to build on the success the company enjoys in other major Alabama markets.

Founded more than 30 years ago in Austin, Texas, Keller Williams has grown to 125,000 associates in 700 market centers.

Part of Keller Williams’ recent growth in Alabama includes the company joining the Alabama Center for Real Estate‘s Corporate Cabinet. Jennifer Reeder-Toomer, CEO/team leader at Keller Williams Vestavia, explains everything from the company’s growth to the Alabama real estate market to the Federal Reserve’s potential rate hike in December.

ACRE: Keller Williams has expanded to Tuscaloosa. Why is this market so attractive at this point in time?

Reeder-Toomer: The Tuscaloosa market continues to grow at a healthy rate. The Keller Williams model, which is agent-centric and nontraditional, is a great fit for this established real estate market. It really is a matter of finding the right “who” to be in business with. The relationships with top producers in the Tuscaloosa area developed in such a fashion as to lead to the opportunity to launch a Keller Williams office, which will capture strong market share right out of the gate. We are thrilled to be in business with such stellar, established agents and build their brand alongside Keller Williams in the great city of Tuscaloosa.

ACRE: Can we expect Keller Williams to announce more expansions in Alabama soon?

Reeder-Toomer: Keller Williams is focused on expansion nationwide. Our company is the largest real estate company by agent count, with more than 125,000 agents in North America. You can expect to see KW move into a greater role in the state of Alabama, as long as the market supports growth and the right relationships are identified. We choose to be in business with talented people, and as we pursue those relationships, market centers will continue to launch.

ACRE: We just reported statewide sales for September and the third quarter are up across the board compared to 2014. Can you talk about why the Alabama market seems to be getting stronger and what we can expect the last three months of 2015?

Reeder-Toomer: Obviously, the interest rates are driving some of the growth, along with the strong jobs report. Consumer confidence has taken some of the fear out of the housing market. We are watching the distressed property percentage of market share decrease as well, which is a great sign for the continued growth of new construction and the traditional retail real estate sales. New construction permits have increased, which indicates the builders have access to financing to build – which was not the case for many of the smaller builders for years – and they believe the supply and demand warrant the development of new homes.

ACRE: The Federal Reserve is hinting once again about a rate hike in December. What impact could this have on Alabama Realtors, homebuyers and home sellers moving forward?

Reeder-Toomer: I find that Realtors tend to be a bit over-reactive to the movement in interest rates. The Fed could initiate a hike, and of course, that would be news. Truth be told, however, even if the rates were to move up a full point, our rates are historically the lowest they have been in decades. We can’t expect the rates to go lower – the cost of money right now is as close to free as possible. It is improbable that the rates could do anything but increase. The bottom line is, real estate will always be bought and sold, and a marginal increase should not reflect much of a change in the rate of sales. If anything, the rate increase may cause a slight downward pressure on listing prices of homes, as the affordability scale could slightly shrink for buyers. In all honesty, it is rare that a residential retail buyer decides to purchase a home because the rates have dropped. Buyers buy when the need is apparent – family growth, marriage, divorce, downsizing, etc. The cost of money being low is an added plus for those buyers. Investors are buying with cash, so rates are a non-factor. Interest rate changes certainly will impact the lending refinance market, and that will be one of the biggest impacts of a rate change if it is to occur.

ACRE: What are the top five hottest markets in Keller Williams’ territory in Alabama?

Reeder-Toomer: We are, of course, excited about the strong Tuscaloosa market we have entered formally. Birmingham continues to grow at a strong rate in terms of Keller Williams increasing market share. Huntsville is one of our hottest markets, and Gulf Shores is experiencing tremendous growth. We are also watching closely our growth of Fairhope market center as one of the burgeoning smaller markets that we support.

Bryan Davis is the research/media coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach.