Alabama’s February Housing Market Kickstarts Spring Rebound with Increase in Home Sales

Alabama’s February Housing Market Kickstarts Spring Rebound with Increase in Home Sales

According to the February 2024 Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS®, Alabama experienced its first increase in home sales activity since June of last year, defying historical trends and ending seven consecutive months of decline. 

Alabama reached 4,710 home sales in February 2024, marking a 0.5% month-over-month increase. Historically, home sales in February decrease due to slower housing market activity in winter months. This rare increase in sales may indicate an early start to the spring selling season.

Market Stats Feb2024 Social

Additionally, Alabama’s median sales price declined in February, suggesting improved affordability for homebuyers. The median sales price decreased by 0.2% year-over-year and has continued to fall throughout the first two months of 2024. 

Data from the February Report shows that active residential listings increased by 122 properties relative to January, ending two months of decline. Annually, the number of homes being listed on the market is up by almost 27%. 

“Housing market activity is increasing, affordability is improving, and houses are being listed for sale every day,” said Senia Johnson, 2024 President of Alabama REALTORS®. “This news is encouraging and suggests that Alabama’s housing market is beginning to rebound, and the spring buying season may be off to an early start.” 

When compared to national trends, Alabama is one of the few areas in the country with increasing inventory and decreasing home prices.

A recent article from Forbes Advisor stated, “Elevated mortgage rates, out-of-reach home prices and record-low housing stock continue to make for a perfect unaffordability recipe.”

Nationally, housing inventory remains historically low, which has amplified demand and sustained ultra-high home prices, but Alabama’s housing supply levels increased to 4.2 months in February, a figure that is 2 months greater than a year ago and the highest level seen in the last five years. 

Alabama’s average and median sales prices both experienced continued decreases in February, with the median price of a home in Alabama recording $200,324. According to NAR, the median price of a home in the United States is $391,700.

“Alabama’s housing market is outperforming most of the nation in terms of options and affordability,” said Jeremy Walker, CEO of Alabama REALTORS®. “Now is a great time for prospective buyers and sellers to connect with a local REALTOR® and turn their homeownership dreams into reality.”