T
he Alabama Association of Realtors released its October report, highlighting a slowdown in state-wide real estate sales due to high interest rates and seasonal factors. Home sales declined 8.6% month-over-month and 12.8% year-over-year, with 4,880 homes sold across the state.

    Economist David Hughes noted that rising mortgage rates have made homeownership more challenging for first-time buyers, but the affordability index remained stable in October. This stability offers a solid foundation for consumers moving forward.

    In contrast to declining sales, Alabama saw a significant increase in new listings, with 19,329 homes coming onto the market, a 32.6% year-over-year rise. This expansion of options may benefit buyers looking to purchase a home.

    The Huntsville Area Association of Realtors reported a decrease in new listings for single-family homes and townhouse/condo units, but pending sales of single-family units increased by 12.5%. Inventory levels continued to grow, with single-family unit inventory increasing by 25.2% and townhouse unit inventory rising by 117.4%.

    On the national scale, a Redfin report found that real estate prices are increasing in areas less prone to flooding, fire, or extreme heat. This trend is attributed to climate change impacting homebuying decisions, with many buyers opting out of high-risk areas due to insurance costs and natural disasters.

    A 2023 survey by Zillow revealed that 80% of buyers consider climate risk when purchasing a home. The loss in demand is particularly notable in Florida and Texas, where insurance premiums have risen significantly following frequent and devastating natural disasters.