83.1 F
Mobile
82.5 F
Huntsville
83 F
Birmingham
62.9 F
Montgomery

Alabama housing market slowed in September, inventory at five-year high

The Alabama Association of Realtors announced the state’s housing market slowed during the month of September and that increases in key areas created more options for potential homebuyers.

According to the September 2024 Alabama Economic and Real Estate Report, Alabama recorded 5,340 home sales in September, a decrease of 10.6% over last month and 8.2% from last year, marking two consecutive months of decline. However, supply increased in September, with 4.6 months of inventory available, up from the 4.1 months available in August 2024. This is also 1.3 months more than a year ago and the highest level in over five years.

“We believe the current trends of rising listings and increased inventory will create more opportunities for buyers,” said Jeremy Walker, CEO of Alabama REALTORS. “As more homes become available, we may see prices ease in the coming months.”

Evan Moore, Economist at Alabama REALTORS, explained that the drop in home sales is not a new phenomenon.

“Historically, home sales in Alabama have fallen during the final months of the last three years,” said Moore.  “While home sales are likely to decline through the remainder of the year, evidence suggests the state’s housing market is and will remain healthy.”

The median sales price increased 3.7% year-over-year to $224,812 in September. However, this is a 4.6% decrease compared to last month, marking the first drop from the recent highs seen this summer.

Additionally, for the eighth consecutive month, active listings continued to rise in Alabama, reaching 18,819 listings. This figure is a 3.8% monthly increase and a 38.3% annual increase, offering the highest number of listings in five years.

Alabama appears to be moving toward 5 to 6 months of supply, which is historically considered evidence of a healthy market.

Austen Shipley is a staff writer for Yellowhammer News. You can follow him on X @ShipleyAusten

Don’t miss out!  Subscribe today to have Alabama’s leading headlines delivered to your inbox.