BY SPEAKIN’ OUT NEWS
Alabama’s housing market showed signs of its usual fall slowdown in October, with home sales dipping both month-over-month and year-over-year. But despite the seasonal cooling, economists say the state’s overall real estate landscape remains “healthy and balanced,” according to the latest Alabama Economic and Real Estate Report, released Thursday by the Alabama Association of Realtors.
The state recorded 5,773 home sales in October — a 4.7% decline from September and 1.7% lower than the same month last year. The decrease reflects normal seasonal patterns, with economists predicting that November sales will likely soften as holiday priorities pull buyers’ attention elsewhere.
“Consumer sentiment continued to decline in October, and there is some evidence of softening in the labor market both in-state and nationally,” said Evan Moore, economist for Alabama Realtors. “At the same time, relatively strong home price appreciation across Alabama suggests good value, and listings reached a new high with nearly five months of supply — a traditional sign of a healthy and balanced market.”
Prices Climb Despite Slower Sales
Even as transactions slowed, home prices surged. The state’s median sales price rose to $253,201, up $41,663 from last year — a 19.7% annual increase and a 7.6% jump from September. Economists expect prices to continue inching upward through November.
Total sold dollar volume for October reached $1.65 billion, marking a sizable 21.3% increase from one year ago, though slightly below September’s total.
Inventory Expands, Mortgage Rates Ease Slightly
Active listings climbed to 20,866, an 8% increase over last year, giving buyers more options. Homes stayed on the market an average of two days longer than September and five days longer than last October.
Meanwhile, the average 30-year fixed mortgage rate eased from 6.34% at the start of October to 6.17% at month’s end — still below the 40-year average of 6.52%.
Economic Factors Still Uncertain
A prolonged federal government shutdown delayed state and national unemployment reporting, but economists noted that unemployment claims rose in both Alabama and nationwide.
Home foreclosures increased 13.7% compared to 2024 but dropped 11.4% from September.
