Alabama’s June Sales Halt Nine Months of Declining Sales
July 21, 2023
Alabama's real estate market experienced a notable turnaround in June after enduring nine consecutive months of declining sales. According to the Alabama Economic and Real Estate Report for June 2023, released by the Alabama Association of REALTORS®, the state recorded 6,577 home sales during the month, representing a 1.9% month-over-month increase. This positive shift in sales is the first the state has seen since the fall of last year.
Still, the number of sales this summer is lower than those in recent summers. Median home affordability has fallen since the beginning of the year.
"This recent increase in sales may indicate that buyers are adapting to today’s mortgage rates and are continuing to pursue homeownership,” said RaJane Johnson, 2023 President of Alabama REALTORS®. “As the housing market adjusts, potential buyers and sellers should closely monitor market trends and seek guidance from real estate professionals to help navigate the evolving landscape.”
Alabama's real estate market continues to show resilience with median sales price and total sales volume remaining stable the last two consecutive months and are forecasted to remain stable in July.
“It is encouraging to see a positive trend in sales for the month of June. Mortgage rates remain low by historical standards," said Jeremy Walker, CEO of Alabama REALTORS®. "Increasing job growth, labor participation, and consumer sentiment are providing optimism for a strong second half of the year.”
Key Indicators from June Home Sales:
- Home prices:The average, or mean, sales price decreased by 11.7% year-over-year in June 2023. The average price decreased by 2.7% compared to May 2023.
- Sales volume: The sold dollar volume was $1.5 billion in June, a decrease of 0.8 billion from last June. This is a 34.8% decrease. This decline in sold dollar volume is driven by fewer sales and the lower average sales price.
- Days on the market: Homes sold in June were on the market for 49 days, on average. This figure is 16 days longer compared to one year ago, but one day less compared to May 2023. This is the first days on market value below 50 since August 2022.
- Supply levels: Housing supply levels remained constant in June 2023 as there were 2.7 months of supply. This figure surpasses the 0.9 months available one year ago, reaching the recent highest level of supply set last month.
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.