Home sales across Alabama began their traditional seasonal decline in October—falling 4.7 percent month over month and 1.7 percent year over year—but indicators point to the state’s housing market remaining “healthy and balanced” according to the Alabama Economic and Real Estate Report released by the Alabama Association of Realtors on Thursday.
“Consumer sentiment continued to decline in October, and there is some evidence of softening in the labor market both in-state and nationally,” Alabama Realtors economist Evan Moore said. “At the same time, relatively strong home price appreciation across Alabama suggests good value in the state’s housing market, and listings increased to a new high last month with almost five months of supply, which is a traditional sign of a healthy and balanced market.”
The monthly report noted that Alabama experienced 5,773 homes sales in October, which represents 282 fewer than September and 97 less than one year ago. When considering indicators and past precedents, economists predict home sales will continue to decline slightly in November as the holidays approach and consumer attention is diverted elsewhere.
The median sales price in Alabama grew by $41,663 year-over-year to $253,201, a 19.7 percent annual increase and a 7.6 percent boost month-over-month. Economists forecast that the median sales price will continue to rise between October and November.
The sold dollar volume in October, which is the combined sales price of all homes closed during the month, was $1.65 billion, a $290 million, or 21.3 percent, increase over the same period last year, but 2.9 percent lower than the month prior.
The 20,866 active monthly listings at the end of October were 8 percent higher than last year, and homes remained on the market just two days longer than in September but five days longer than one year ago.
The average 30-year fixed-rate mortgage fell from 6.34 percent at the start of October to 6.17 percent by month’s end, and though it climbed back to 6.24 percent by mid-November, the current rate remains below the 6.52 percent averaged over the last 40 years.
While the prolonged government shutdown prevented the timely release of both state and federal unemployment figures for October or preliminary forecasts for November, the economists noted that unemployment claims rose both in Alabama and across the U.S. last month.
Home foreclosures rose by 13.7 percent compared to 2024 but fell 11.4 percent compared to September.
