T
he Alabama Association of Realtors (AAR) has released its September 2024 economic report, revealing a significant increase in housing inventory across the state. With a 4.6 months' supply, this marks the highest level in over five years, representing a year-over-year growth of 1.3 months.

    According to local data from the Huntsville Area Association of Realtors (HAAR), the Huntsville-Madison County market had a 4.2 months' supply. This increase in inventory has led to a surge in active listings, with September marking the eighth consecutive month of growth. Active listings rose by 38.3% annually and 3.8% monthly.

    "We believe this trend will create more opportunities for buyers as more homes become available," said Jeremy Walker, CEO of Alabama REALTORS. "As inventory increases, we may see prices ease in the coming months."

    The AAR report also showed a statewide decrease in sales of 10.4% from August to September and projects a similar decline in October. However, this is not unusual for the last three months of the year.

    A recent HAAR report indicates a healthy market with pending sales increasing by 41% for single-family units and 10% for townhouse/condo units. New listings for single-family units saw a modest 6.4% increase, while new listings for townhouses remained flat. Inventory of single-family units increased by 30.2%, and townhouse/condo units saw a 159% surge.

    On the national scale, Freddie Mac reports that there are 30 renter households for every home available for sale. To meet demand, an additional 1.5 million houses would need to be added to the market. This shortage not only affects first-time buyers but also forces them to compete with more new entrants in the market.

    The Huntsville Business Journal will continue to monitor the real estate market, both locally and nationally.