The Alabama housing market is currently performing well, according to the Alabama Association of Realtors' recently released Alabama Economic and Real Estate Report for May 2024. In fact, the housing market has seen four consecutive months of strong gains in multiple areas, creating new opportunities for both buyers and sellers.
“Recent interest rate reductions have brought more buyers to the market, and further rate reductions will likely attract even more buyers,” said Jeremy Walker, CEO of Alabama Realtors. “With plenty of inventory, buyers who act now have a great opportunity to find their dream home or property.”
Senia Johnson, 2024 president of the Alabama Association of Realtors, told potential buyers and sellers to act as soon as possible.
“Now is a great time to get into the market for buyers and sellers,” Johnson says. “There is less competition, more options for buyers, and both sales and sales prices continue to increase, which is good news for sellers.”
RELATED: Alabama's spring housing market continues to rise month after month, mortgage rates remain high
Improvements in the state's housing market during May were notable.
For example, home sales in Alabama increased to 5,209. This increase is good news for potential sellers looking to put their homes on the market. However, home sales were down 19.3% year over year, indicating that competition for buyers is weaker than in previous years.
Additionally, the median sales price in Alabama reached a four-month high, up 2.9% from April to $204,184. The average sales price also increased by $3,973 month-over-month in May. However, both the median and average sales prices are down year-over-year, suggesting that homes remain affordable for today's buyers.
During that same period, the average interest rate on a 30-year mortgage fell 19 basis points during May, from 7.22% to 7.03%. Rates continued to trend downward through the first two weeks of June to 6.95%.
Austin Shipley is a staff writer for Yellow Hammer News. You can follow him on X. @ShipleyAusten
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