Alabama Real Estate Market Insights for July 2024
Alabama Housing Market Analysis - July 2024
The Alabama housing market in July 2024 presents a mixed bag of trends, reflecting both growth and challenges. The median sales price for homes in Alabama stands at $288,100, which represents a slight decrease of 0.02% year-over-year (YoY). This marginal decline indicates a relatively stable pricing environment despite broader economic uncertainties.
The median list price, however, has seen a more noticeable decline, dropping by 2% YoY to $294,000. This reduction in list prices suggests that sellers may be adjusting their expectations to align with market conditions, potentially to attract more buyers in a competitive landscape.
On a per-square-foot basis, the median sales price is $152 reflecting a 3% increase YoY. This rise indicates that while overall prices may be stabilizing or slightly declining, the value attributed to each square foot of property is appreciating. Similarly, the median list price per square foot has increased by 5% YoY to $159 further underscoring the growing value of property space in Alabama.
In terms of sales activity, Alabama has witnessed a positive trend. The number of homes sold in July 2024 is 5,582 marking a 6% increase YoY. This uptick in sales volume suggests a healthy demand for housing in the state. However, pending sales have remained flat with no change YoY, standing at 6,089. This stagnation in pending sales could indicate a potential slowdown in future sales activity.
New listings have also seen a positive movement, with a 4% increase YoY, totaling 6,760. This rise in new listings provides more options for buyers and could help balance the market. Inventory levels have surged significantly, with a 23% increase YoY, reaching 18,816. This substantial growth in inventory suggests that the market is becoming more saturated, which could lead to longer selling times and more competitive pricing.
The months of supply, a critical indicator of market balance, has increased by 50% YoY to 3.4 months. This increase indicates a shift towards a buyer's market, where the supply of homes is growing relative to demand. Consequently, the median days on market have risen by 11% YoY to 51 days, reflecting longer selling times as buyers have more options to choose from.
The average sale-to-list price ratio has slightly decreased by 1% YoY, now standing at 0.98. This minor decline suggests that homes are selling very close to their list prices, but slightly below, indicating some negotiation room for buyers. Additionally, the percentage of homes sold above list price has dropped by 5% YoY to 19%, highlighting a decrease in competitive bidding scenarios.
Price drops have remained stable with no change YoY, accounting for 29.27% of listings. This stability suggests that while sellers are adjusting prices, the rate of price reductions has not increased significantly. However, the percentage of homes going off the market within two weeks has decreased by 8% YoY to 31%, indicating that homes are taking longer to sell compared to the previous year.
In summary, the Alabama housing market in July 2024 is characterized by stable to slightly declining prices, increased inventory, and longer selling times. While sales activity remains robust, the market is showing signs of shifting towards a buyer's market, with more options available and less competitive bidding. Sellers may need to adjust their strategies to attract buyers in this evolving landscape.
