Get the Daily News Digest in your inbox each morning. Sign Up

Alabama home sales rebound after new data shows third consecutive month of growth

MONTGOMERY, Ala. – Alabama’s housing market saw its third consecutive month of improvement in April according to a new report from the Alabama Association of Realtors, a sharp turnaround from 2023, during which home sales shrunk by more than 30% when compared to the previous year.

“While it appears that lending rates will remain elevated, buyers have more affordable options in today’s housing market,” AAR CEO Jeremy Walker said in a statement.

“April has been the state’s most encouraging month this year, and indicators point to further improvements throughout the summer.”

The report reveals that in April, there were 5,161 home sales with a median sales price of $198,486, for a total sales volume of $1.2 billion. Home sales improved over March’s numbers by 3.7%, and over February’s by nearly 10%. 

Overall sales volume in April also increased by around $100 million when compared to March, and by around $200 million when compared to February.

At $198,486, the median sales price of homes in April improved as well, dropping from March’s median price of $202,883, and February’s $200,324.

Data from the Alabama Association of Realtors’ April report.

The data shows a promising upward trend for Alabama’s housing market, which throughout 2023 saw a shrinking number of home sales, and rising foreclosures and home costs. 

Alabama was not alone in its struggling housing market, with national home sale rates hitting a 13-year low in 2023, often attributed to rising interest rates that saw mortgage rates reach their highest levels since 2000.

While an improvement over the last several months, April’s housing data was generally worse when compared to April of 2023. The number of home sales, for instance, was 24.8% less when compared to the same period last year, as was the overall sales volume, down by 25%.

Foreclosures in April were also up by 23.6% when compared to the same time last year. Two metrics that saw improvements when compared to a year ago were the median home sale price, which was down in April by 4.3%, and the number of active listings, which was up by 37.2%.

One tool some state lawmakers have proposed that could help improve Alabama’s housing market was to fund the Alabama Housing Trust Fund, which, while established more than a decade ago, has yet to see any state dollars put towards it.

A bi-partisan effort from two state lawmakers was made in April to allocate $25 million toward the fund, which was designed to support the construction, renovation and maintenance of affordable housing for Alabamians with incomes below 60% of their area’s median family income.

That $25 million allocation was projected to create 500 new affordable homes in its first year, and over 5,000 homes – along with the preservation of 3,000 homes – over ten years if continually funded at the same level.

Rep. Rex Reynolds, who received the request from the two lawmakers – Rep. Debbie Wood, R-Valley, and Sen. Linda Coleman-Madison, D-Birmingham – previously told Alabama Daily News that he supported the idea of funding the fund, but that the request came too late during the budget process.

Reynolds did say he would be open to funding the AHTF in fiscal 2026, but that he would prefer to do so with a recurring revenue source, rather than a new expenditure.

Get the Daily News Digest in your inbox each morning.

This field is for validation purposes and should be left unchanged.

Web Development By Infomedia