Despite seeing a downturn in home sales, Alabama’s real estate market is showing signs of opportunity, according to the latest October 2023 report from the Alabama Association of REALTORS® (AAR).
Home sales, down 3,488 compared to last October, comes along with a silver lining: Declining interest rates and a noticeable uptick in housing supply.
“Declining interest rates signal promise for Alabama’s real estate market,” said Jeremy Walker, CEO of Alabama REALTORS.
“The decrease in rates presents new avenues for growth and investments in our state. Alabama’s economy remains strong statewide, unemployment is down, labor participation is up, we have an increased number of residential listings, and falling mortgage rates. All of which may lead to increased sales activity despite seasonal trends in the winter months,” Walker said.
The average sales price rose in October, representing a 0.6% increase compared to September 2023. October also saw 16.5% more active listings compared to one year ago, and 975 new listings have come onto the market since September.
“It is encouraging to see more homes on the market, which give potential buyers more opportunities for homeownership,” said Senia Johnson, President of Alabama REALTORS®.
The report noted the Federal Reserve voted at its November meeting to keep the fed funds rate target constant, increasing optimism that the Federal Reserve has reached the end of its rate hikes, and allowing rates to decline throughout early November.
The average 30-year fixed rate mortgage has decreased to 7.44% as of November 16 from highs of approximately 8% in early October.
Key takeaways from October:
- Alabama had 5,596 home sales in October. This is a decrease of 3,488 sales compared to October of last year
- The median sales price decreased by $17,016 compared to a year ago to $206,317. This is an annual decrease of 7.6%
- The sold volume was $1.3 billion in October, a decrease of $0.9 billion from last October. This is a 40.9% annual decrease
- The 14,578 active listings at the end of October marks an increase of 16.5% compared to the 12,511 one year ago
- The 505 foreclosures in October represent a 11.2% year-over-year increase. It is a 10.1% increase in foreclosures since last month
Grayson Everett is the state and political editor for Yellowhammer News. You can follow him on Twitter @Grayson270
