State housing market continues slowdown

The Alabama housing market is continuing its months-long slowdown, according to a report from the Alabama Association of Realtors.

“Alabama’s housing market is continuing a slow start to the year and spring season,” said Alabama Realtors CEO Jeremy Walker. “Home sales are heavily influenced by interest rates.

“Credit conditions and economic uncertainty have continued to hinder our state’s housing market.”

Although the data shown in April’s Alabama Economic and Real Estate Report demonstrates a continued cooling of the housing market, the group does not feel it is indicative of the general economic state of Alabama.

“Although Alabama is in the midst of a slow spring market, our state is thriving in terms of growth and economic development and we’re continuing to see people move to Alabama and those people need a place to live,” said Alabama Realtors President RaJane Johnson. “Realtors in Alabama are poised to help buyers and sellers navigate the challenges of today’s housing market and achieve their goal of home ownership.”

Here are more key indicators from the report:

• Home prices: The median sales price decreased by $18,145, compared to a year ago, to $212,276. This represents an annual decrease of 7.9%. The average, or mean, sales price decreased by 12.7% year-over-year in April 2023 to $235,087.
• Sales volume: The sold dollar volume was $1.6 billion in April, a decrease of $0.8 billion from last April. This is a 33.3% annual decrease.
• Foreclosures: Alabama saw 390 foreclosures in April, an 11.1% year-over-year increase, yet a slight decrease in foreclosures since last month.
• Supply levels: Housing supply levels continued their upward trajectory in April 2023 as there were 2.5 months of supply. This figure is more than the 1.6 months available one year ago and is the highest level of supply since June 2020.

Alabama had 6,863 home sales in April, a decrease of 2,015 sales compared to April 2022  and a decrease of 235 homes sold in March.

Austen Shipley is a staff writer for Yellowhammer News.