Alabama’s Housing Market Continues to Grow and Flourish in June

Alabama’s Housing Market Continues to Grow and Flourish in June

According to the June 2024 Alabama Economic and Real Estate Report released on Friday by the Alabama Association of REALTORS®, home sales across the state sustained their fifth consecutive month of growth, signifying a strong recovery from the lows at the start of the year and a positive outlook for Alabama’s economy.

"Alabama’s housing market continues to show remarkable resilience and growth,” said Senia Johnson, 2024 President of Alabama REALTORS®. “The steady increase in the state’s home sales and rising home prices indicate healthy demand and the growing confidence of both buyers and sellers alike."

In June, Alabama recorded 5,423 home sales, up 4.1% from May, marking the fifth consecutive month of sales growth. A year-over-year comparison showed that the figures for June were down 1,154 compared to the same period last year.

Market Stats June2024 Social (1)
 

Active listings continued to rise, reaching 16,549 at the end of June. This is a significant increase both monthly and annually, bringing listing levels close to those seen in early 2020.

Monthly building permits for new houses surged to their highest level since May 2022, indicating ongoing confidence and investment in Alabama’s housing market.

Alabama’s job market also showed strength, with 3,500 jobs added in May, marking the seventh consecutive month of job gains and supporting the housing market's positive trajectory.

“The latest data underscores a positive trend in our housing market, driven by economic growth and favorable mortgage rates,” said Jeremy Walker, CEO of Alabama REALTORS®. “As we look forward, a potential cut to the federal funds rate could further stimulate the real estate industry, providing even more opportunities for home and property ownership.”

The average 30-year fixed-rate mortgage decreased by 17 basis points through June and has remained below 7% for the past seven weeks, providing favorable conditions for homebuyers.

According to economic prognosticators, the softening labor market, decreasing inflation rate, and improving consumer confidence increase the likelihood of a rate cut at the Federal Reserve’s September meeting from 63.3% to 98.1%.

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.