Alabama Housing Market: November 2024 Analysis
The Alabama housing market in November 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes in Alabama stands at $278,900, reflecting a modest year-over-year increase of 1.1%. This indicates a slight upward pressure on home prices, suggesting a stable demand in the market.
Conversely, the Median List Price has decreased by 0.3% year-over-year, now at $286,900. This decline in list prices could suggest that sellers are adjusting their expectations to align more closely with buyer affordability and market conditions. The median Price Per Square Foot has risen by 4.3% to $150, while the Median List Price per square foot has increased by 4.6% to $157, indicating a stronger appreciation in property values on a per-square-foot basis.
In terms of sales activity, the number of Homes Sold has increased by 6.9% year-over-year, totaling 4,345 units. Pending Sales have also seen a significant rise of 10.5%, reaching 4,930 units. This uptick in sales activity suggests a robust demand for housing in Alabama, potentially driven by favorable economic conditions or demographic shifts.
New Listings have grown by 3.7% year-over-year, with 5,128 properties entering the market. Inventory levels have expanded by 11.3%, now at 18,608 units, contributing to a Months of Supply figure of 4.3, which is up by 20.0% from the previous year. This increase in inventory and supply could provide more options for buyers, potentially easing competitive pressures in the market.
The Median Days on Market have increased by 8.0% to 57 days, indicating that homes are taking slightly longer to sell compared to last year. The average sale to list ratio has decreased by 0.6% to 97.1%, suggesting that buyers are negotiating more effectively, possibly due to the increased inventory.
The percentage of Homes Sold above list price has declined by 3.7% to 15.7%, while the rate of Price Drops has increased by 0.9% to 22.0%. These trends may indicate a cooling in the market, where sellers are more willing to adjust prices to facilitate sales. Additionally, the percentage of homes going off the market within two weeks has decreased by 5.1% to 24.2%, further supporting the notion of a more balanced market.
Overall, the Alabama housing market in November 2024 exhibits a mix of stability and adjustment. While prices show modest growth, increased inventory and longer market times suggest a shift towards a more balanced environment, offering opportunities for both buyers and sellers to navigate the market effectively.
