Home sales in Alabama continued growing in June, climbing 8.2 percent from May and rising 10.9 percent compared to June 2024, according to the Alabama Economic and Real Estate Report released Monday by the Alabama Association of REALTORS.
This marks the second straight month of growth for the state’s housing market, signaling renewed momentum after a prolonged downturn that defined 2024, the worst real estate market Alabama had seen in three decades.
“The continuing increase in home sales provides good news across Alabama, but the ‘slump’ described in various media outlets is real in the sense that June’s numbers are lower than years prior to 2024,” said Alabama REALTORS economist Evan Moore. “Factors ranging from available inventory to slowing median price growth to Alabama’s robust economy point to the market favoring buyers, and it is a suitable time for buyers to consider taking action.”
Compared to May, the median sales price in June rose 1.4 percent to $233,458, representing a two percent increase of $4,488 over June 2024. The dollar volume of homes sold across the state totaled $1.86 billion in June, a 26.5 percent increase year-over-year and a 9.4 percent rise over May.
The number of active listings climbed for the fifth consecutive month to 20,298—the highest figure in five years and a 22.7 percent increase over 2024. Inventory was also up three percent compared to May, providing buyers with more options across various price points and property types.
The average number of days homes spent on the market in June increased to 63, which is five days longer than the previous month and ten days longer than June 2024. Still, the broader trend suggests a more balanced and accessible market for home seekers, particularly when compared to the rapid-paced, low-inventory conditions of the early 2020s.
Recent reports show the rebound began this spring. In May, home sales rose 7.3 percent from April and were 6.5 percent higher than May 2024. Inventory has been rising steadily since early 2025, and the last five months have each outpaced the same period in 2024.
Economic conditions continue to support the housing market’s recovery. Alabama’s gross domestic product growth ranked third in the nation, and the state saw the eighth-highest increase in current-dollar personal income.
Alabama outpaced neighboring Georgia, Tennessee and Florida in income growth during this period. The state’s unemployment rate has held steady at 3.3 percent for nine straight months, below the national rate of 4.2 percent. Labor force participation reached 58 percent in June.
June’s housing numbers still fall short of pre-2024 benchmarks.
