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Economy

Alabama’s housing market continues to slow in April

The median sales price decreased by $18,145 compared to a year ago.

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According to the April 2023 Alabama Economic and Real Estate Report released by the Alabama Association of Realtors, the number of homes sold in Alabama continues to decrease. 

Alabama had 6,863 home sales in April, a decrease of 2,015 sales compared to April of last year and a decrease of 235 homes sold compared to last month. 

“Alabama’s housing market is continuing a slow start to the year and spring season,” said Alabama Realtors CEO Jeremy Walker. “Home sales are heavily influenced by interest rates. Credit conditions  and economic uncertainty have continued to hinder our state’s housing market.”

Alabama Association of Realtors

As the Federal Reserve continues to increase the fed funds rate, lending standards are tightening, creating  a credit crunch. This combination is making the construction of new housing more expensive. However,  Alabama has no shortage of active residential listings on the market. Alabama had 10,988 active listings  at the end of April, an increase of 56 percent compared to last year.  

“Although Alabama is in the midst of a slow spring market, our state is thriving in terms of growth and  economic development and we’re continuing to see people move to Alabama and those people need a  place to live”, said Alabama Realtors President RaJane Johnson. “REALTORS® in Alabama are poised to  help buyers and sellers navigate the challenges of today’s housing market and achieve their goal of  homeownership.” 

Here are more key indicators from April home sales, according to our latest report: 

  • Home prices: The median sales price decreased by $18,145 compared to a year ago, to $212,276. This is an annual decrease of 7.9 percent. The average, or mean, sales price decreased by 12.7 percent year-over-year in April 2023, to $235,087.
  • Sales volume: The sold dollar volume was 1.6 billion in April, a decrease of $0.8 billion from last April. This is a 33.3 percentt annual decrease.
  • Foreclosures: Alabama saw 390 foreclosures in April, an 11.1 percent year-over-year increase, yet a slight decrease in foreclosures since last month.
  • Supply levels: Housing supply levels continued their upward trajectory in April 2023 asthere were 2.5 months of supply. This figure is more than the 1.6 months available one year ago and is the highest level of supply since June 2020.

The Alabama Economic and Real Estate Report is published monthly and annually by the Alabama Association of Realtors.

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