As the summer comes to an end, Alabama’s real estate market is showing promising growth – and that growth doesn’t seem to be slowing down anytime soon.
According to Alabama REALTORS® July 2024 Alabama Economic and Real Estate Report, home sales reached 6,136 in July, up 0.9% from last year and a significant 13.1% from June. The total sales volume surged to $1.51 billion, marking an 8.6% increase from July 2023 and a 15.3% rise from the previous month.
The median home price also reflects this positive trend, standing at $233,216. This is a 2.3% increase from July 2023 and a 1.9% rise from June. Higher sales prices and increased sales volume suggest a robust and resilient housing market in Alabama.
“The July report clearly shows that Alabama’s housing market is on a solid upward trajectory,” said Senia Johnson, 2024 President of Alabama REALTORS®. “A month or two of growth is a positive sign, but six consecutive months of sales increases is an irrefutable trend that should continue as interest rate reductions take effect.”
The overall impact of real estate on Alabama’s economy is substantial. In 2023, the sector contributed $48.7 billion, or 16.2% of the state’s gross domestic product (GDP). Each home sale generated an estimated economic impact of $84,300, highlighting the sector’s broad financial influence.
Every time a home is sold, it often leads to the construction of new homes. Typically, for every six existing homes sold, one new home gets built. This continues to create jobs for Alabamians and stimulates the economy as builders, contractors, and suppliers all benefit from new construction.
And the money earned from home sales doesn’t just stay in one place– it circulates through the economy. For instance, the income from real estate jobs gets spent on other goods and services, creating a ripple effect that helps various parts of the economy. New home construction, expenditures on home-related purchases, such as furniture and remodeling, as well as income from real estate-related industries, have a significant impact in stimulating economic activity and growth.
“The consistent growth over the past six months shows that demand for homes in our state remains strong and Alabama’s economy remains robust,” said Jeremy Walker, CEO of Alabama REALTORS®. “As the market continues to strengthen, the state remains a prime location for homebuyers and investors alike, especially when supported by an increasingly favorable mortgage rate environment.”
With Alabama’s real estate market on an upward trajectory, we can expect continued growth in both housing and economic conditions across the state.
For more details, visit https://www.alabamarealtors.com/who-we-are/market-stats.
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