According to the May 2024 Alabama Economic and Real Estate Report recently released by the Alabama Association of Realtors, the state of Alabama’s housing market is currently trending in a positive direction. In fact, for the fourth consecutive month, the housing market has shown major increases in multiple areas, creating new opportunities for both buyers and sellers alike.
“The recent reduction in interest rates has attracted more buyers into the market, and further reductions will likely attract even more,” said Jeremy Walker, CEO of Alabama REALTORS. “Buyers who act now, while inventory is high, have a great opportunity to find the perfect home or property.”
Senia Johnson, 2024 President of Alabama REALTORS, told potential buyers and sellers to make a move as soon as possible.
“Now is a great time for buyers and sellers to jump into the market,” said Johnson. “There is less competition and more options available for buyers, while both sales and sales prices are continuing to increase, which is welcome news for sellers.”
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The improvements to the state’s housing market during the month of May were substantial.
For example, home sales in Alabama increased to 5,209 sales. The increase is positive news for potential sellers looking to list their home on the market. Alternatively, home sales are still down 19.3% year-over-year, indicating less competition for buyers than in previous years.
Also, Alabama’s median sales price reached its highest value in four months, increasing by 2.9% compared to April to $204,184. The average sales price also saw a monthly increase of $3,973 in May. However, both median and average sales prices remain down year-over-year, suggesting continued affordability for today’s buyers.
During the same time frame, average 30-year mortgage rates decreased by 19 basis points throughout May from 7.22% to 7.03%. Rates have continued to trend downward through the first two weeks of June to 6.95%.
Austen Shipley is a staff writer for Yellowhammer News. You can follow him on X @ShipleyAusten
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