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According to the August 2024 Alabama Economic and Real Estate Report released on Friday by the Alabama Association of REALTORS®, the state’s housing market showed signs of cooling in August, but remains robust, especially with recent economic developments.
A key highlight for potential buyers and sellers is the Federal Reserve’s recent decision to cut the fed funds rate by 50 basis points at its September meeting, signaling further decreases in mortgage rates and improved affordability.
“We believe the recent rate cut by the Federal Reserve is the first big step in a continuing decline in mortgage rates,” said Jeremy Walker, CEO of Alabama REALTORS®. “Lower rates mean more affordable monthly payments, bringing homeownership within reach for those who may have been on the sidelines due to the high mortgage rate environment of the past year.”
In August, 5,974 homes were sold, recording a year-over-year increase of 39 sales, but a 2.6 percent decrease month-over-month, marking the first month of declining sales since January. Sold dollar volume totaled $1.49 billion in August, up 6.41 percent year-over-year, but down 1.3 percent from the prior month.
“As the traditional summer home-buying season comes to an end, so does the six-month streak of increasing home sales in Alabama,” said Senia Johnson, 2024 President of Alabama REALTORS®. “Even though different seasons bring differing levels of housing market activity, the rate reduction announcement should help buoy home sales.”
Alabama’s median sales price continued to rise, reaching $235,575 in August — an increase of 1.5 percent year-over-year and 1.0 percent month-over-month. This marks the highest median price since August 2022.
Meanwhile, active listings increased for the seventh consecutive month, reaching 18,136 listings, the highest figure recorded in over four and a half years. Coupled with 4.1 months of available supply, Alabama’s current market offers ample inventory for buyers.
Average 30-year mortgage rates fell by 38 basis points in August, ending the month at 6.35 percent. As of September 19, rates have dropped further to a new record low of 6.09 percent, creating even more favorable conditions for buyers and sellers.
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.
