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labama's housing market experienced a slowdown in October, with home sales decreasing by 8.6% month-over-month and 12.8% year-over-year. The decline was attributed to rising mortgage rates and seasonal trends. However, the state saw an increase in inventory, which along with stable affordability, presents new opportunities for consumers.

    The median sales price rose 6.7% from last year to $220,196, but dipped 2.1% from September. This marks the fifth consecutive month of year-over-year price increases, indicating ongoing strength in Alabama's housing market. Active listings also increased by 32.6% year-over-year and 2.7% month-over-month, providing more options for buyers.

    Economist David Hughes notes that rising mortgage rates have made homeownership more challenging, particularly for first-time buyers. However, the affordability index remained stable in October, indicating that homes are still within reach for median-income households. The recent cut to the fed funds rate and seasonal trends favoring higher inventory and lower prices may provide a buffer against further challenges affecting the market.

    The Alabama Association of REALTORS releases the Alabama Economic and Real Estate Report monthly and annually, providing insights into the state's housing market.