Alabama
In Alabama, falling prices and rising listings could tempt home buyers
Homes Sales Drop to Shockingly Low Levels
Home sales are on track for their worst year since 1995, with September sales falling 3.5% from a year earlier and 2023 was their lowest level in 30 years.
Cheddar
A recent report shows that the housing market in Alabama has seen a decrease in recent home sales, specifically over the last year, but this could prove opportunistic for buyers — especially during seasonal drops.
In September, Alabama reported via the Alabama Economic and Real Estate Report 5,340 home sales. This is a decrease of 8.2% from last year.
Though median sales prices increased year-over-year in September, the prices recorded in the report from this past September showed a 4.6% decrease from the previous month and the first drop since highs seen in the summer.
Evan Moore, an economist at Alabama Realtors, said that the final months of the past three years have seen home sales decrease. “While home sales are likely to decline through the remainder of the year, evidence suggests the state’s housing market is and will remain healthy,” Moore said.
However, active listings are also on the rise in Alabama, as has been the case for the past eight months. As of September, Alabama is seeing the highest number of listings in the past five years.
The report predicted that Alabama is moving toward 5 to 6 months of supply, which the report claims is historically considered evidence of a healthy market.
“We believe the current trends of rising listings and increased inventory will create more opportunities for buyers,” said Jeremy Walker, CEO of Alabama Realtors. “As more homes become available, we may see prices ease in the coming months.”
However, further drops could be coming to the Montgomery housing market.
In Construction Coverage’s recent report on the seasonality of the U.S. housing market, between 2014 and 2023, the Montgomery market saw an average seasonal decline of 24% in its median home sale price. This drop is the 15th largest of any midsize U.S. metro area.
Generally, in September, Montgomery home prices are at their highest, but Construction Coverage’s report says that last year, the median sales price fell to their lowest in January — which opens a potential opportunity for buyers in the winter.
Sarah Clifton covers business for the Montgomery Advertiser. You can reach her at sclifton@montgome.gannett.com or follow her on X @sarahgclifton.