Home sales in Alabama are down about 31% year-to-date, but more listings and slightly declining mortgage rates appear to be causing small increases in sales.
There were 5,209 home sales in Alabama in May, a decrease of more than 19% compared to May 2023 but up slightly from April and marking the fourth conservative monthly increase.
And more people are listing homes for sale. There were 15,776 active listings at the end of May, a 40.9% increase from a year ago and up 704 from April 2024, according to the most recent Alabama Economic and Real Estate Report from the Alabama Association of REALTORS.
The median sales price decreased in May by $23,692 from a year ago to $204,184, but was also increasing compared to earlier this year.
“Now is a great time for buyers and sellers to jump into the market,” association president Senia Johnson, 2024 President of Alabama REALTORS®. “There is less competition and more options available for buyers, while both sales and sales prices are continuing to increase, which is welcome news for sellers.”
Active listings continue to rise. There were 15,776 at the end of May, up from 11,195 a year prior. Meanwhile, interest rates ticked down slightly. Average 30-year mortgage rates decreased throughout last month from 7.22% to 7.03%. Halfway into June, they’d declined to 6.95%.
“The recent reduction in interest rates has attracted more buyers into the market, and further reductions will likely attract even more,” REALTORS CEO Jeremy Walker said in a written statement.
There were 462 home foreclosures in May, up 28.7% from May 2023. Year-to-date, foreclosures have increased by 26% this year.