Seasonal trends proved reliable as home sales across the state fell 3 percent month-over-month in December, but they remained 2.9 percent higher than the same period in 2024, according to the Alabama Economic and Real Estate Report released Monday by the Alabama Association of Realtors.
“The monthly decline is in line with seasonal trends as the holiday period between November and January is traditionally the worst time for home sales in every region,” Alabama Realtors economist Evan Moore said. “The state remains close to five months of supply, which is a traditional benchmark of a balanced market, and figures show that homes in Alabama are maintaining their equity reasonably well.”
The monthly report noted that Alabama experienced 5,604 home sales in December, 174 fewer than November but 157 more than one year ago.
The median sales price in Alabama grew by $33,726 year-over-year to $245,615, a 15.9 percent annual increase but a 2.5 percent drop month-over-month. Mortgage rates have continued to decline and recently reached their lowest point in three years at 6.06 percent, a combination the economist suggests should boost short-term interest in home purchases.
“It is possible the lower rates and reduced prices may entice buyers to make purchases even before the spring, which is when the home market heats up along with the weather,” Moore said. “Once the traditional spring buying season begins, median home prices are likely to increase, potentially offsetting savings from a lower interest rate, so now is a good time to purchase a home.”
The sold dollar volume in December—the combined sales price of all homes closed during the month—was $1.56 billion, a 20 percent increase over the same period last year but 3.7 percent lower than the month prior.
The 19,808 active monthly listings at the end of December, which equate to 4.7 months of supply and signal a balanced market, were 7.3 percent higher than the 18,468 of the prior year. Homes remained on the market an average of 78 days, one day longer than December 2024 but seven days longer than November, attributable to the holiday downturn period.
The latest Bureau of Labor Statistics numbers showed Alabama’s labor market has weakened slightly as the agency’s initial employment figures for September, October and November were adjusted downward, but unemployment claims fell in December, though indicators point to them being back on the rise.
New home building permits were down 8 percent year-to-date in December, signifying fewer new homes will be built in the early months of 2026.
