Buoyed by falling interest rates and strong employment figures, home sales and median prices increased across Alabama during 2025, according to the 2025 Annual Alabama Economic and Real Estate Report released Monday by the Alabama Association of Realtors.
Economists preparing the report said the housing market growth experienced during 2025 and other positive factors leave them “cautiously optimistic” that additional expansion will occur in 2026.
“Looking toward 2026, signs remain cautiously optimistic for the Alabama housing market as the state continues to be a leader in the Southeast for net migration, recently ranking as the 9th most ‘moved to’ state in the country,” Alabama Realtors economist Evan Moore said. “With inventory levels starting the new year higher than in previous cycles and mortgage rates lower than those of much of the previous three years, Alabama is well-positioned to sustain the growth momentum established over the past twelve months.”
The 71,485 home sales across Alabama in 2025 increased by 3.9 percent over the prior year, which reversed the staggering 18 percent decline the state suffered in 2024. The median sales price in 2025 of $233,969 is the highest on record in Alabama history and represents an 11 percent increase, dwarfing the 1.7 percent increase experienced nationally.
The total sales volume in 2025—the total amount of all home sales throughout the year—was $19.37 billion, a 20.3 percent increase over 2024.
The 19,744 average active listings in 2025 are a 17.6 percent increase compared to the 16,786 of 2024 and represent the highest average in six years, but it remains below the 2019 pre-pandemic average of 20,478. Higher inventory offers buyers more selection and a better opportunity to find the perfect home that fits their needs and desires.
The 4.7 months of housing supply in 2025 remained close to the five months of supply that economists consider a traditional benchmark of a balanced market.
Houses remained on the market an average of 69 days in 2025, with 57 days in April totaling the fewest number of days during the year and 84 days in January being the highest. While days on the market rose 9.5 percent between 2024 and 2025, they remained six days below 2019’s pre-pandemic number.
Alabama’s economy remained strong as the unemployment rate fell below 3 percent for the last six months of the year, which ranked among the lowest in the nation, and for a three-month period between April and June, the state’s labor force participation rate was the highest in a decade.
