Alabama real estate market looks promising for buyers and sellers in May
Alabama real estate market looks promising for buyers and sellers in May

According to the May 2024 Alabama Economic and Real Estate Report recently released by the Alabama Association of Realtors, the Alabama real estate market is currently trending in a positive direction. In fact, for the fourth month in a row, the real estate market is seeing major gains in several areas, creating new opportunities for both buyers and sellers.

“The recent reduction in interest rates has attracted more buyers to the market, and further reductions will likely attract even more buyers,” said Jeremy Walker, CEO of Alabama REALTORS. “Buyers who act now while supply is high have a great opportunity to find the perfect home or property.”

Senia Johnson, Alabama REALTORS president for 2024, advised potential buyers and sellers to act as quickly as possible.

“Now is a good time for buyers and sellers to enter the market,” Johnson said. “There is less competition and more options for buyers, while both sales and sale prices continue to rise, which is welcome news for sellers.”

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Improvements in the state’s housing market in May were significant.

For example, home sales in Alabama increased to 5,209 sales. The increase is positive news for potential sellers looking to put their home on the market. On the other hand, home sales are still down 19.3% year over year, indicating less competition for buyers than in previous years.

Additionally, the median sales price in Alabama reached its highest in four months, increasing 2.9% from April to $204,184. The average sales price also saw a monthly increase of $3,973 in May. However, both the median and average sales price remained lower year-over-year, suggesting they remain affordable for today’s buyers.

During the same period, average 30-year mortgage rates fell 19 basis points from 7.22% to 7.03% in May. In the first two weeks of June, rates continued to trend downward, reaching 6.95%.

Austen Shipley is an editor at Yellowhammer News. You can follow him on X. @ShipleyAusten

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By Aurora