Alabama monthly Real Estate Report indicates brisk activity
The Alabama Association of Realtors (AAR) has released its Alabama Economic and Real Estate Report for June of 2024.
The report shows several indicators that the real estate market across the state is maintaining a strong and healthy level of activity.
“The latest data underscores a positive trend in our housing market, driven by economic growth and favorable mortgage rates,” said Jeremy Walker, CEO of Alabama Realtors. “As we look forward, a potential cut to the federal funds rate could further stimulate the real estate industry, providing even more opportunities for home and property ownership.”
Sales across the state increased 4.1% from the previous month, making the fifth consecutive month of sales growth. The AAR expects that this trend will continue through the month of July, estimating an increase of around 3%.
The number of active listings increased to 16,549, bringing those levels to a number that hasn’t been seen since before the pandemic.
The median sales price across the state continued to rise, racing $228,970 during the month of June. This is a 12.1% increase from May, the highest single spike in ten months.
The average sales price reached $242,141, an increase of 5.7% from May, and a 7.6% increase from June of the previous year. The AAR also expects the average price to continue to rise over the next month, by an estimated 4%.
The increase in sales has begun to outpace the additional inventory added to the market. The monthly supply of inventory dipped from 4.4 in May to 4.3 in June.
However, this arrest in momentum is being somewhat offset by a surge in housing building permits issued in June, which reached the highest levels since May of 2022. This indicates a continued demand for housing across the state, and confidence in the viability of Alabama’s housing market.
The 30-year fixed mortgage rate steadily decreased over the course of June, remaining below seven percent for the past seven weeks. The rate of inflation has begun to decline, which increases the likelihood that the Federal Reserve will begin lowering the interest rates at the end of the year.
Here in Huntsville specifically, the Huntsville Area Association of Realtors (HAAR) has also released its monthly report.
The Huntsville/Madison County market saw an increase in sales. 685 houses were sold in June, up from 651 the previous year, with 1059 pending sales over the course of June.
The number of homes on the market showed a marked increase, with 2237 houses on the market, up from 1565 in 2023. Houses are spending an average of ten days longer on the market in June of 2024 than they did in 2023, with the average time spent on market at 35 days.
Finally, the average sales price has continued to creep upwards, showing a $5K year-over-year increase. The average sales price in Madison County reached $390,000.
These reports are indicators of a healthy real estate market for both Alabama as a whole and Huntsville in particular. With Alabama adding another 3,500 jobs in May, there is solid basis for consumer confidence in the market as we look towards late summer and early fall.
