Alabama Housing Market Analysis - August 2024
The Alabama housing market in August 2024 presents a complex landscape with varying trends across different metrics. The data reveals a mix of both positive and negative shifts, reflecting the dynamic nature of the real estate market in the state.
Price Metrics
The Median Sales Price for homes in Alabama stands at $281,400, which represents a slight decrease of 1.8% year-over-year (YoY). In contrast, the Median List Price has increased by 2.7% YoY, reaching $300,800. This divergence suggests that while sellers are optimistic about pricing, actual sale prices are experiencing downward pressure.
When examining Price Per Square Foot, the median Price Per Square Foot is $151, up by 1.5% YoY. The Median List Price per square foot has seen a more significant increase of 4.8% YoY, now at $163. These figures indicate a general upward trend in property valuations on a per-square-foot basis, despite the overall decline in Median Sales Prices.
Sales and Inventory
The number of Homes Sold in August 2024 is 5,289, marking a 4.7% decline YoY. Pending Sales have dropped more sharply, down by 14.5% YoY to 5,711. New Listings have seen a marginal decrease of 0.8% YoY, totaling 6,512. However, inventory levels have surged by 18.2% YoY, reaching 18,411 homes. This increase in inventory, coupled with a 70% rise in Months of Supply to 3.5 months, suggests a shift towards a buyer's market.
Market Dynamics
The Median Days on Market for homes in Alabama is now 51 days, an 8% increase YoY. This indicates that homes are taking longer to sell compared to the previous year. The average sale to list ratio has slightly decreased by 0.4% YoY, now at 97.6%, suggesting that homes are selling closer to their list prices but with a slight discount.
The percentage of Homes Sold above list price has dropped by 4.8% YoY to 17.9%, indicating a reduction in competitive bidding. Additionally, the rate of Price Drops has increased by 2.8% YoY, now at 29.7%, reflecting sellers' adjustments to align with market conditions. The percentage of homes going off-market within two weeks has decreased by 8% YoY, now at 27%, further highlighting the cooling market dynamics.
Conclusion
Overall, the Alabama housing market in August 2024 is characterized by a mix of rising inventory and longer selling times, coupled with slight declines in sales prices and Pending Sales. While sellers remain optimistic with higher list prices, the actual sales data suggests a more cautious buyer sentiment. The increased inventory and Months of Supply indicate a shift towards a more balanced market, if not a buyer's market, providing opportunities for prospective buyers to negotiate better deals.
