Interest rates remained flat during the first week of September, slowing down a multi-week decrease that experts attribute to the market preparing for the much-anticipated Federal Reserve cuts expected to be announced at the Fed’s next meeting, on September 18.

“I do believe in anticipation of this cut, most of the reduction has been built into the market already over the last few weeks,” says Ralph DiBugnara, the founder of Home Qualified.

The good news is that this will prevent the market from fluctuating wildly when the rate cuts arrive. Unfortunately, this also means that they will not likely result in the immediate, sharp reduction in housing costs that many would-be homebuyers have been hoping for.

However, this September cut is expected to be only the first of several, continuing through the end of 2024 and into 2025.

The release of the August monthly jobs report this past Friday, which shows a lackluster job growth, has economists arguing that the focus of the Federal Reserve should pivot from combating inflation towards bolstering job growth.

Federal Reserve Chair Jerome Powell advocated for this shift in a statement given the last week of August, when he said “We do not seek or welcome further cooling in labor market conditions.” Powell added, “We will do everything we can to support a strong labor market as we make further progress toward price stability.”

“It is clear that the employment market is slowing down, and the Fed has to start to move,” said Eugenio Aleman, chief economist at Raymond James.

Here in Huntsville, the market has been relatively steady. The Huntsville Area Association of Realtors (HAAR) compiled its report for the last week of August.

Pending sales of single-family units increased by 3.1%, while townhouse/condo units saw a 9.1% decrease in pending sales. New listings of single-family units decreased by 6.9%, in contrast to townhouse units, which had a 130% increase in new listings.

Inventory for both types of residential units continued to increase, with a 38.8% increase to single-family units paired with a 140% increase to townhouse units.

The real estate market for both Alabama in general and the Huntsville/Madison County market in particular has been quite robust and healthy, with the month of July having marked six consecutive months of increasing sales statewide.

As always, the Huntsville Business Journal will continue to report developments in the real estate market, both nationally and here at home.