According to the August 2023 Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS®, Alabama continued to experience an increase in average sales price and an overall slowdown in home sales activity in August.
Alabama’s August home sales activity decreased relative to last month, marking the second consecutive month of declining sales.
The average 30-year fixed mortgage rate continues to impact buyers and sellers alike, having peaked at 7.23 percent in August, its highest value in over 20 years.
“With mortgage rates surpassing the 7 percent mark throughout August, it is not surprising that we are continuing to experience a dip in sales compared to previous months,” said RaJane Johnson, 2023 President of Alabama REALTORS®. “The higher mortgage rates have understandably influenced the decisions of prospective homebuyers, prompting them to carefully weigh their options and timing.”
The combination of higher mortgage rates and limited supply is helping to support higher prices, which is ultimately benefitting sellers.
Alabama’s median and average sales prices continued to rise in August. Despite the increase in prices, the state remains one of the ten most affordable states to own a home according to a September report from Business Insider.
Alabama Realtors August Report
“In Alabama, the cost of homeownership is significantly less than the national average. Alabama’s affordability and economic growth is what attracts buyers from other parts of the country and keeps our housing market resilient,” said Jeremy Walker, CEO of Alabama REALTORS®.
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.
