Alabama Housing Market Analysis - July 2024
The Alabama housing market in July 2024 presents a dynamic landscape with notable shifts in various key metrics. This analysis delves into the current state of the market, highlighting trends and changes observed over the past year.
Median Sales and List Prices
The median sales price for homes in Alabama stands at $288,100, reflecting a slight decrease of 1.9% year-over-year (YoY). Similarly, the median list price has also seen a decline, now at $294,000, down by 1.7% YoY. These decreases suggest a cooling in the market, potentially offering more opportunities for buyers.
Price Per Square Foot
Despite the overall decline in median prices, the median price per square foot has increased by 2.6% YoY, reaching $152. This indicates that while overall prices may be slightly down, the value of the space within homes is appreciating. The median list price per square foot has seen an even more significant rise, up by 5.0% YoY to $159, suggesting that sellers are recognizing and capitalizing on the increased value per square foot.
Sales and Listings Activity
The number of homes sold in July 2024 is 5,582, marking a 5.7% increase YoY. This uptick in sales activity indicates a robust demand in the market. However, pending sales have slightly decreased by 0.5% YoY, totaling 6,089. New listings have risen by 4.4% YoY, with 6,760 new homes entering the market, contributing to a growing inventory.
Inventory and Supply
Inventory levels have surged by 23.4% YoY, reaching 18,816 homes. This significant increase in available homes has led to a rise in the months of supply, now at 3.4 months, up by 50.0% YoY. The increased supply suggests that the market is becoming more balanced, potentially easing the competitive pressure on buyers.
Market Dynamics
The median days on market for homes in Alabama is now 51 days, an 11.0% increase YoY. This longer time on the market may indicate that homes are not selling as quickly as they were last year. The average sale to list ratio has slightly decreased by 0.5% YoY, now at 97.8%, suggesting that homes are selling closer to their list prices.
Price Adjustments and Off-Market Activity
The percentage of homes sold above list price has decreased by 5.0% YoY, now at 19.1%. This decline indicates that fewer homes are experiencing bidding wars. Additionally, the percentage of price drops has increased by 5.6% YoY, with 29.3% of homes undergoing price reductions. The percentage of homes going off the market within two weeks has decreased by 8.1% YoY, now at 30.8%, suggesting that homes are taking longer to sell.
Conclusion
In summary, the Alabama housing market in July 2024 is characterized by a slight cooling in median prices, increased value per square foot, robust sales activity, and a significant rise in inventory. These trends indicate a shift towards a more balanced market, offering potential opportunities for both buyers and sellers. As the market continues to evolve, stakeholders should stay informed and adapt to the changing dynamics.
