Alabama’s housing market experienced slight month-over-month decreases in key sectors such as total sales and median price during April, but it remains strong when compared to the same period in 2024, according to the Alabama Economic and Real Estate Report released on Tuesday by the Alabama Association of Realtors.
Alabama’s 5,791 home sales last month signaled a slight 6.8 percent decrease from March, but it represented a 10.8 percent increase year-over-year when compared with April of 2024. Likewise, the median home price in April was $224,967, a 13.3 percent increase compared to one year ago, but a slight 2.2 percent decrease when juxtaposed with March.
“The slight sales dip in April may be tied to negative attitudes regarding the national economy, but late spring and early summer are usually months for increasing home sales activity in Alabama,” Alabama Realtors economist Evan Moore said. “Even if economic pessimism continues to dampen sales, the numbers in coming months should be higher than the same period in recent years.”
Moore noted that the Index of Consumer Sentiment declined slightly in May, which marks the fifth consecutive month of decline and the lowest value in almost three years, but Alabama’s economy remains stable with unemployment at 3.3 percent for the seventh consecutive month and below the 4.2 percent national rate. The labor force participation rate in Alabama also rose for the second consecutive month and is at its highest level since March of 2019.
The sold volume across the state, which is the total value of homes closed, was $1.54 billion in April, a significant 30.5 percent increase over last year but a 3.1 percent decrease month-over-month.
The average home sale price in April of $265,232 also reflected a 17.8 percent increase over last year, and the state’s 19,144 active listings at the end of April were 27 percent higher than the 15,072 of one year ago, which provides buyers with ample selection and inventory.
Last measured at 6.81 percent on May 15, the average 30-year fixed mortgage rate is lower than the 7.13 percent of the same time in 2024 and has remained below last year’s levels for each of the past four weeks.
At an average of 57 days, homes in Alabama remained on the market for four fewer days in April compared to March, and economists predict little change in the near future under the current financial atmosphere.
