Home prices in Alabama could follow new softening trend

New data from real estate industry experts show that the trend of rising home prices seen in the last few years could start trending the other way.

While many of Alabama’s most populated cities continue to see prices increase over last year, prices are increasing at a slower rate — and in some cities in the state have actually decreased.

Here’s how the home prices look in some of Alabama’s communities compared to the national average:

Home prices in Alabama’s major metros

Median home prices nationwide in April of 2024 were 6.1 percent higher than they were a year ago, which shows a much slower rate of increase than we have seen in the market over the last couple of years.

A report by Redfin shows asking prices have dropped on average nationwide.

Here’s how median home prices in Alabama’s most populated cities compare to the national median according to Redfin:

Location	Median home price April 2024	%Change YoY
U.S.	$432,903	+6.1%
Birmingham	$190,000	+14.3%
Huntsville	$340,000	+2.4%
Mobile	$190,000	-1.0%
Montgomery	$167,000	-3.7%
Tuscaloosa	$248,000	+10.2%
Dothan	$242,500	+15.5%
Hoover	$420,000	-1.8%
Auburn	$409,022	+10.8%
Decatur	$241,200	+9.4%
Madison	$407,500	-7.6%

Home prices expected to soften

A report from Charles Schwab last week says that the consistent rise in home prices looks to be slowing, and that prices are “easing from extremes.”

“As housing was the first sector to kick off the rolling recessions we’ve pointed out for more than two years, it now looks like it’s participating in the start of rolling recoveries.”

Charles Schwab report, May 28, 2024

A recent report from Redfin says that sale-price growth could slow down in the near future.

“Nationwide, 6.4% of home sellers cut their asking price during the four weeks ending May 26, on average, the highest share since November 2022. The median asking price dropped roughly $3,000 to $416,623 in the last week, the first decline in six months.”

Dana Anderson, Redfin

 Stay in the know on buzzy news here in Alabama! Follow The Bama Buzz on Facebook, LinkedIn & Instagram.