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The Alabama Association of REALTORS® (AAR) has published the Alabama Economic and Real Estate Report for May 2023, providing valuable insights into the state’s housing market and economic conditions. The May report notes that while sales volume continues to slow, Alabama’s home supply is on the rise.
In May 2023, Alabama witnessed a decrease in home sales, with 6,453 sales recorded during the month. This represents a decline of 2,430 sales compared to May of the previous year and marks the lowest May sales volume in five years.
RaJane Johnson, 2023 President of the Alabama Association of REALTORS®, commented on the decreasing sales volume, stating, “Higher interest rates continue to influence the market and suppress overall sales activity. It is essential for prospective buyers and sellers to stay informed about local market conditions and work closely with a knowledgeable REALTOR® in their local area.”
Home inventory has increased across the state. New listings have increased 35.7 percent compared to the previous year and housing supply has increased by 58.8 percent compared to last year. The increase in housing supply helps provide more options for potential buyers.
Despite the slowdown in sales volume, home values have remained steady. The median sales price has been on an upward trend for the past four months, showcasing the market’s ability to maintain stability and value appreciation in the face of slowing sales and rising rates. In May 2023, the median sales price was $227,876, up from February’s 12-month low of $200,650, and represents the highest median sales price since October 2022.
“Alabama’s real estate market continues to demonstrate resilience that shows the underlying strength and value of properties in our state. If the Federal Reserve can stabilize interest rates, we are optimistic sales volume will increase later this summer,” said Jeremy Walker, CEO of the Alabama Association of REALTORS®.
Here are more key takeaways from May home sales, according to our latest report:
• Alabama had 6,453 home sales in May. This is a decrease of 2,430 sales compared to May of last year.
• The median sales price decreased by $9,757 compared to a year ago to $227,876. This is an annual decrease of 4.3 percent.
• The sold volume was $1.5 billion in May, a decrease of $0.8 billion from last May. This is a 34.8 percent annual decrease.
• The 11,195 active listings at the end of May marks an increase of 35.7 percent compared to the 8,250 one year ago.
• The 359 foreclosures in May represent a 6.8 percent year-over-year decrease and a 7.9 percent decrease in foreclosures since last month.
The Alabama Economic and Real Estate Report is published monthly and annually by the Alabama Association of REALTORS®. Click here to view the full monthly and annual reports.
