The July 2023 Alabama Economic and Real Estate Report, published by the Alabama Association of REALTORS®, shows that Alabama experienced upswings in both median and average sales prices in July, highlighting an improvement in the state’s housing market.
Alabama’s median sales price increased to $228,030, achieving the highest median sales price recorded this year. The July increase represents a month-over-month increase of 0.8 percent.
Alabama’s average sales price also increased for the first time this year. In July, the average sales price reversed its declining trend and rose to $228,112, signifying a month-over-month uptick of 1.3 percent.
“The rise in the median and average sales prices are encouraging and show the continued strength of Alabama home values,” said RaJane Johnson, 2023 President of Alabama REALTORS®.
Alabama REALTORS® economists predict that both the median and average sales prices will continue to increase between July and August.
The total number of home sales in July decreased 7.5 percent month over month to 6,084, which is the lowest July total home sales in five years. That trend is expected to continue in August as interest rates have increased and continue to exert downward pressure on overall sales, especially among younger and first-time buyers.
“First-time buyers are facing multiple challenges, including elevated home prices, higher interest rates, renewed student loan obligations, and reduced purchasing capacity,” said Jeremy Walker, Alabama REALTORS® Chief Executive Officer.
The Alabama Economic and Real Estate Report is published monthly and annually by the Alabama Association of REALTORS®. Click here to view the full monthly and annual reports.