Home sales across Alabama began their traditional seasonal decline in October, falling 4.7% month over month and 1.7% year over year — but indicators point to the state’s housing market remaining “healthy and balanced” according to the Alabama Association of Realtors’ October monthly report released Thursday.
“Consumer sentiment continued to decline in October, and there is some evidence of softening in the labor market both in-state and nationally,” Alabama REALTORS® economist Evan Moore said.
“At the same time, relatively strong home price appreciation across Alabama suggests good value in the state’s housing market, and listings increased to a new high last month with almost five months of supply, which is a traditional sign of a healthy and balanced market.”
The monthly report noted that Alabama experienced 5,773 homes sales in October, which represents 282 fewer than September and 97 less than one year ago.
When considering indicators and past precedents, economists predict home sales will continue to decline slightly in November as the holidays approach and consumer attention is diverted elsewhere.
The median sales price in Alabama grew by $41,663 year-over-year to $253,201, a 19.7% annual increase and a 7.6% boost month-over-month. Economists forecast that the median sales price will continue to rise between October and November.
The sold dollar volume in October, which is the combined sales price of all homes closed during the month, was $1.65 billion, a $290 million, or 21.3%, increase over the same period last year, but 2.9% lower than the month prior.
The 20,866 active monthly listings at the end of October were 8% higher than last year, and homes remained on the market just two days longer than in September but five days longer than one year ago.
The average 30-year fixed-rate mortgage fell from 6.34% at the start of October to 6.17% by month’s end, and though it climbed back to 6.24% by mid-November, the current rate remains below the 6.52% averaged over the last 40 years.
While the prolonged government shutdown prevented the timely release of both state and federal unemployment figures for October or preliminary forecasts for November, the economists noted that unemployment claims rose both in Alabama and across the U.S. last month.
Home foreclosures rose by 13.7% compared to 2024 but fell 11.4% compared to September.
