T
he Alabama Association of Realtors has released its Alabama Economic and Real Estate Report for August 2024, painting a picture of a "cooling but robust" state-wide real estate market.

    As summer's home-buying season comes to an end, the six-month streak of increasing home sales in Alabama has also ended, according to Senia Johnson, President of Alabama Realtors. However, she notes that the recent rate reduction announcement by the Federal Reserve should help boost home sales.

    Active listings across the state have increased for seven consecutive months, reaching a four-and-a-half-year high. Despite this, total home sales in August showed a modest year-over-year increase from 2023 but a 2.6% month-over-month decrease from July.

    The median sales price statewide reached $235,575 in August, up 1.5% and 1.0% from the previous year and month, respectively. Experts expect the Federal Reserve's rate cut to impact housing prices in the coming months.

    Jeremy Walker, CEO of the Alabama Association of Realtors, believes the recent rate cut is a step towards lower mortgage rates, making homeownership more affordable for those who may have been priced out due to high mortgage rates.

    Nationwide, mortgage activity surged after the Federal Reserve's announcement, with mortgage loan application rates jumping 14.2% and purchase applications increasing by 5%. Mortgage refinancing applications also saw a significant surge of 24%.

    The nationwide average 30-year fixed rate mortgage reached a 2-year low of 6.08%, reported by Freddie Mac on September 27, 2024, resulting in an estimated $300 monthly savings compared to the previous year.

    Locally, the Huntsville Area Association of Realtors' report shows continued brisk activity despite new listings being down slightly for single-family units and townhouse/condo units seeing a significant increase. Sales were up for both types of units, with pending sales of single-family units increasing by 28.2% and townhouse units selling an increase of 211.1%.