August Signals Mixed in Alabama Housing Market
In August, the Alabama housing market presented a mix of trends, as indicated by the latest report from the Alabama Association of Realtors®. While there’s a noted decline in sales, buyers are spotting more affordable options thanks to recent mortgage rate cuts and easing home prices.
The sales figures show a 1.7% drop since July and a 5.6% decrease compared to August of the previous year. The median sale price now stands at $222,811, which reflects a 2.6% reduction from last month and a 5.4% decline compared to last year.
Despite low sales, the overall dollar amount sold in August reached $16.9 billion. This figure is 6.3% higher than the same month last year, yet it’s down 3.4% from July.
Evan Moore, an economist with Alabama Realtors®, highlighted that improving affordability remains crucial.
“By combining the drop in average mortgage rates with the substantial inventory across the state, the Alabama housing market is becoming more supportive of buyers,” said Moore.
The decrease in rates and home prices has led to 30-year monthly mortgage payments being $155 cheaper than they were in June.
Active listings have also risen for seven straight months, climbing 14.7% in August. This increase provides buyers with a greater selection to choose from.
Homes were on the market for an average of 67 days in August. This is a day longer than July and eight days more than last year, suggesting sellers might need to brace for extended listing durations.
Moore remarked that the recent interest rate cuts by the Federal Reserve were primarily influenced by national unemployment trends. While unemployment has increased across the nation, Alabama’s rate has decreased to 3.0% as of July, marking the second consecutive month of decline and remaining significantly lower than the national average of 4.2%.
For buyers, August has brought some much-needed relief in the form of lower prices, reduced mortgage costs, and increased inventory.
On the flip side, sellers still face favorable conditions, but they’re dealing with slower sales, longer listing times, and softer pricing.
