The Alabama Association of Realtors has released their Alabama Economic and Real eState Report for the month of 2024.

The report summarizes the state of the Alabama real estate market -the average of the entire state, not merely our own Huntsville/Madison County market – as ‘cooling, but robust.’

“As the traditional summer home-buying season comes to an end, so does the six-month streak of increasing home sales in Alabama,” said Senia Johnson, 2024 President of Alabama Realtors. “Even though different seasons bring differing levels of housing market activity, the rate reduction announcement should help buoy home sales.”

Active listings across the state reached their seventh consecutive month of increases, marking the highest level recorded in four and a half years. However, while the total sales of homes across the state registered a modest year-over-year increase from August 2023, it was a 2.6% month-over-month decrease from July.

The median sales price across the state reached $235,575 in August, an increase in both year-over-year and month-over-month figures of 1.5% and 1.0%, respectively. However, experts expect the Federal Reserve’s larger-than-expected rate cut to have an effect on housing prices moving into the last months of 2024.

“We believe the recent rate cut by the Federal Reserve is the first big step in a continuing decline in mortgage rates. Lower rates mean more affordable monthly payments, bringing homeownership within reach for those who may have been on the sidelines due to the high mortgage rate environment of the past year,” said Jeremy Walker, CEO of the Alabama Association of Realtors.

The Mortgage Bankers Association reports that mortgage activity surged in the week since the Federal Reserve announced the large rate cut. Across the nation, mortgage loan application rates jumped 14.2% from the previous week. Purchase applications increased by 5%, and mortgage refinancing applications surged upwards by 24% from the previous week.

On the week of Friday, September 27, 2024, the nationwide average of 30-year fixed rate mortgages reached a 2-year low, dipping down to a rate of 6.08%, as reported by Freddie Mac. This is the lowest rate since September 2022, and roughly translates to an average savings of $300 per month on mortgage payments compared to a year prior.

According to a report compiled by the Huntsville Area Association of Realtors (HAAR), our local market continues its steady rate of brisk activity. As the report is accurate as to the week of September 14, 2024, the Federal Reserve slash had not yet had time to affect the market.

New listings were down slightly for single-family units, a decrease of 1.8%, while

townhouse/condo units saw a 275% increase. Sales were up for both single-family units, with pending sales of single-family units up by 28.2%, and townhouse units selling an increase of 211.1%.

New housing inventory continued to come online, with a 37.3% increase of single-family units, and a 171.5% increase in townhouse/condo units.

The Huntsville Business Journal will continue to report on developments in the real estate market, both locally and nationwide.