Real Estate Update: Alabama housing market primed for Spring sales
The Alabama Association of Realtors (AAR) released its Economic and Real Estate Report for February of 2024.
Home sales across the state numbered 4,710 for the month of February. This not only marks a 0.5% increase from January, but it also bucks the historical trend of housing sales lagging in February. An increase in sales could be the first indicators of an early spring selling season picking up momentum.
Moreover, Alabama continues to add inventory to its housing supply, with a 27% year-over-year increase in homes listed for the month of February.
Across the state, the median sales price of a single-family home actually decreased, to $200,324. The national median sales price, according to the National Association of Realtors, stands at $391,700.
“Alabama’s housing market is outperforming most of the nation in terms of options and affordability,” said Jeremy Walker, CEO of Alabama Realtors. “Now is a great time for prospective buyers and sellers to connect with a local Realtor and turn their homeownership dreams into reality.”
Here in Huntsville more specifically, data continues to indicate a market picking up steam.
According to a report released by the Huntsville Area Association of Realtors (HAAR), dated for March 16, 2024, new listings of single family units increased 19%, while townhouse/condo units saw a 125% increase.
Pending sales of single family units were up by 12.4%, but townhouse/condo sales were down by 50%.
And finally, inventory continues to increase here in the Huntsville/Madison County market, which saw an 18.4% increase in single family units and a 73% increase in townhouse units.
On the national level, the Mortgage Bankers Association reports that 30-year fixed mortgage applications saw a slight decline of 0.7% compared to the previous week, and that applications to refinance home loans dropped by 2%, marking a 9% decrease from the same week the previous year.
This demonstrates that the “lock-in effect” – potential homebuyers holding off on entering the market due to unfavorable financing conditions compared to their current mortgages – is still active for many consumers. What effect this will have, if any, on blunting the spring housing market season remains to be seen.
As always, the Huntsville Business Journal will continue to monitor the real estate market, both nationally and here at home, to bring you the news as it develops.
