Home sales in Alabama declined in August, but this week’s rate cut by the Federal Reserve could signal a change on the horizon.
The Alabama Association of Realtors Friday released its August report. According to the association, 5,974 homes were sold in August in Alabama, a year-over-year increase of 39 sales.
However, the number was a 2.6% decrease from the previous month, breaking a six-month streak and marking the first month of declining sales since January.
Sold dollar volume totaled $1.49 billion in August, up 6.41% year-over-year, but down 1.3% from the prior month.
However, the Federal Reserve’s recent decision to cut the fed funds rate by 50 basis points could spur more sales.
The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market after spending more than a year working to curb inflation.
“We believe the recent rate cut by the Federal Reserve is the first big step in a continuing decline in mortgage rates,” Association CEO Jeremy Walker said. “Lower rates mean more affordable monthly payments, bringing homeownership within reach for those who may have been on the sidelines due to the high mortgage rate environment of the past year.”
According to the report, the state’s median sales price rose to $235,575 in August — an increase of 1.5% year-over-year and 1% month-over-month. That’s the highest median price since August 2022.
Active listings also increased for the seventh consecutive month, reaching 18,136 listings, the highest figure recorded in over four-and-a-half years.
