The Alabama Association of Realtors released its Alabama Economic and Real Estate Report for the month of May 2024.

The report shows that home sales across the state have increased for the fourth month in a row, with 5,209 home sales for the month of May.

However, this is still down 19.3% from May of 2023.

Listings across the state increased to 15,776 units. Combined with the 4.4 months’ supply of inventory, and the supply level across Alabama is currently the highest it has been in years.

The median sales price has ticked up by 2.9%, while the average sales price also increased by nearly $4000 from the previous month. However, both of these figures are a year-over-year decrease from May of 2023.

The average 30-year mortgage rate dipped down from 7.22% to 7.03% over the course of May. This downward trend has continued through the first two weeks of June, where it sits at around 6.95%.

Jeremy Walker, CEO of Alabama Realtors, commented on the report.

“The recent reduction in interest rates has attracted more buyers into the market, and further reductions will likely attract even more,” said Walker. “Buyers who act now, while inventory is high, have a great opportunity to find the perfect home or property.”

These statewide trends are also reflected in the local real estate market here in Huntsville.

The Huntsville Area Association of Realtors (HAAR) released its own monthly report for the month of May.

Like the statewide survey, the report finds that supply is continuing to grow here in Huntsville. Inventory of single-family units increased by 24.7%, while the inventory of townhouse/condo units saw an explosive increase of 81%. The Months’ supply of inventory for single-family units reached 3.3 months, while townhouse/condo units sit at 4.1 months’ worth in Huntsville/Madison County.

This puts the total number of homes for sale in Huntsville/Madison County at 2167, up from 1460 in May of the previous year.

There were 723 homes sold in Huntsville/Madison County this past May, up from 665 in May of 2023, with 1132 pending sales initiated over the month.

The average days on market increased to 37 days, up from 34 the previous year.

“This month’s snapshot shows more sales and listings, but barriers remain for first-time buyers and others to achieve the American Dream of owning a home. Home values show signs of stabilizing but will continue to climb. More options must become available for middle- and lower-income families,” said Kurtis Krueger, CEO of HAAR and ValleyMLS.

The Huntsville Business Journal will continue to report on developments in the real estate market as they occur.