Home sales took a traditional seasonal tumble in Alabama in January, but median sales prices continued to rise year over year, according to the Alabama Economic and Real Estate Report released Thursday by the Alabama Association of Realtors.
“While January sales saw a seasonal dip, the state’s robust local economy, characterized by a steady 2.7 percent unemployment rate and a downward trend in unemployment claims, provides a solid foundation for a rebound in spring sales activity,” Alabama Realtors economist Evan Moore said. “Furthermore, with active listings up 7.5 percent year over year, the increased inventory should provide prospective buyers with more options, potentially offsetting the recent declines in consumer confidence.”
Alabama recorded 4,761 home sales in January, a 15 percent decrease from December and 9.5 percent fewer than a year ago, the report said.
The median sales price rose $36,052 from a year ago to $244,520, a 17.3 percent annual increase and a 0.4 percent decline from December.
Sold dollar volume in January—the combined sales price of all homes closed during the month—totaled $1.34 billion. That marked a 5.5 percent increase from the same period last year but a 14.1 percent drop from December.
Active listings reached 19,073 at the end of January, up 7.5 percent from a year earlier. Homes remained on the market an average of 81 days, three days longer than in December but 3.5 percent less than in January 2025.
The report forecast monthly listings will decrease about 2.9 percent to 18,524 before the next AAR Economic Report if current trends continue.
Housing supply stood at 5.3 months in January, nearly a full month higher than the 4.4 months recorded at the same time in 2025. Economists predicted supply will decrease about 1.9 percent from January to February.
“Consumer confidence fell to its lowest level since 2014 last month, but Alabama’s economy continues to remain relatively strong,” Moore said. “The Federal Reserve is planning to loosen rules to help increase competition in mortgage lending, which should help lower mortgage rates.”
