The Alabama Association of Realtors (AAR) has released its monthly economic report for the month of September, 2024.

The report showed that Alabama has a 4.6 months’ supply of housing inventory. This marks a year-over-year increase of 1.3 months’ supply, and is the highest level in more than five years.

According to the Huntsville Area Association of Realtors, the Huntsville-Madison County market had 4.2 months’ supply.

With this increase in inventory came an increase in active listings. September marked the eighth consecutive month of increase in active listings across the state. September 2024 saw a 38.3% annual increase in active listings, which is also a 3.8% monthly increase.

“We believe the current trends of rising listings and increased inventory will create more opportunities for buyers,” said Jeremy Walker, CEO of Alabama REALTORS®. “As more homes become available, we may see prices ease in the coming months.”

AAR’s September report showed a statewide decrease of sales of 10.4% month-over-month from August, and the report projects that the October report will show a similar decline between September and October. However, sales often slow during the last three months of a year.

A report from HAAR, dated for the week of October 12, shows indicators of a healthy market; pending sales increased by 41% for single-family units, and a 10% increase for townhouse/condo units. New listings for single-family units saw a modest 6.4% increase, while new listings of townhouse units remained flat. And finally, inventory of single family units increased by 30.2%, while townhouse/condo units saw a 159% increase.

On the national scale, a report from Freddie Mac shows that there are 30 renter households for every home for sale. Back in May, Freddie Mac estimated that it would take an addition of 1.5 million houses for sale to fully meet the demand for housing.

“Therefore, not only do people seeking to buy their first home have to navigate an expensive market, but they also have to compete with more first-time buyers as supply continues to trail demand,” Freddie Mac economists wrote in the report.

The Huntsville Business Journal will continue to monitor the real estate market, both nationally and here at home.