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labama home sales declined in August, but a recent rate cut by the Federal Reserve could signal a shift in the market. According to the Alabama Association of Realtors, 5,974 homes were sold in August, a year-over-year increase of 39 sales, but a 2.6% decrease from July, breaking a six-month streak. Sold dollar volume reached $1.49 billion, up 6.41% year-over-year, but down 1.3% from the previous month.

    The Federal Reserve's decision to cut the fed funds rate by 50 basis points could lead to lower mortgage rates and more sales. Association CEO Jeremy Walker believes this is a positive step towards making homeownership more affordable for those who have been priced out due to high mortgage rates.

    Alabama's median sales price rose to $235,575 in August, an increase of 1.5% year-over-year and 1% month-over-month, the highest since August 2022. Active listings also increased for the seventh consecutive month, reaching a record high of 18,136 listings, the most in over four-and-a-half years.