Alabama's Housing Market Continues to Slow in April
May 23, 2023
FOR IMMEDIATE RELEASE
Contact: Anna Grace Gamble, Director of Communications
Montgomery, Ala. – (May 22, 2023) – According to the April 2023 Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS®, the number of homes sold in Alabama continues to decrease.
Alabama had 6,863 home sales in April, a decrease of 2,015 sales compared to April of last year and a decrease of 235 homes sold compared to last month. “Alabama’s housing market is continuing a slow start to the year and spring season,” said Alabama REALTORS® CEO Jeremy Walker. “Home sales are heavily influenced by interest rates. Credit conditions and economic uncertainty have continued to hinder our state’s housing market.”
As the Federal Reserve continues to increase the fed funds rate, lending standards are tightening, creating a credit crunch. This combination is making the construction of new housing more expensive. However, Alabama has no shortage of active residential listings on the market. Alabama had 10,988 active listings at the end of April, an increase of 56% compared to last year.
“Although Alabama is in the midst of a slow spring market, our state is thriving in terms of growth and economic development and we’re continuing to see people move to Alabama and those people need a place to live”, said Alabama REALTORS® President RaJane Johnson. “REALTORS® in Alabama are poised to help buyers and sellers navigate the challenges of today’s housing market and achieve their goal of homeownership.”
Here are more key indicators from April home sales, according to our latest report:
- Home prices: The median sales price decreased by $18,145 compared to a year ago, to $212,276. This is an annual decrease of 7.9%. The average, or mean, sales price decreased by 12.7% year-over-year in April 2023, to $235,087.
- Sales volume: The sold dollar volume was 1.6 billion in April, a decrease of $0.8 billion from last April. This is a 33.3% annual decrease.
- Foreclosures: Alabama saw 390 foreclosures in April, an 11.1% year-over-year increase, yet a slight decrease in foreclosures since last month.
- Supply levels: Housing supply levels continued their upward trajectory in April 2023 as there were 2.5 months of supply. This figure is more than the 1.6 months available one year ago and is the highest level of supply since June 2020.
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.
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About Alabama REALTORS®
The Alabama Association of REALTORS® (AAR) is the largest statewide organization of real estate professionals comprised of over 19,000 members from 23 boards and 1,200 real estate companies. United by adherence to a Code of Ethics, our members work as real estate professionals in the sale, lease, appraisal, management and development of residential, commercial, rural and resort properties throughout Alabama.
The goal of AAR’s Economic and Real Estate Report is to produce timely, data driven economic and market analysis, authoritative business intelligence to serve members, and inform consumers, policymakers and the media in a professional and accessible manner.