Home sales rose across Alabama in February, while the average time homes stayed on the market fell by a double-digit margin as lower mortgage rates pushed buyers to act, according to the Alabama Economic and Real Estate Report released Thursday by the Alabama Association of Realtors.
“Home sales in Alabama increased from January to February as interested buyers moved quickly to take advantage of low mortgage rates, but rates climbed in early March as Treasury yields rose with the conflict in Iran,” Alabama Realtors economist Evan Moore said. “At the same time, days on market dropped significantly in February, down by 16 days relative to January and by two weeks year-over-year, which was also likely prompted by the more affordable rates.”
The monthly report showed Alabama recorded 5,028 home sales in February, up 5.6 percent from January but down 858 sales, or 14.6 percent, from the same month a year earlier.
Alabama’s median home price rose 2.3 percent from January and 22.3 percent from a year earlier, increasing by $45,542 to $250,113, a sign that homes continued to gain equity.
Sold dollar volume in February—the combined sales price of all homes closed during the month—totaled $1.43 billion. That was up 6.7 percent from January but down 0.7 percent from the same period last year.
Active listings totaled 19,283 at the end of February, up 7.4 percent from 17,958 a year earlier. Homes spent an average of 65 days on the market, down 22 percent from January and 17.7 percent from a year earlier.
The report forecast that monthly listings will likely remain unchanged between now and the next AAR Economic Report as the spring buying season begins to take hold.
Housing supply stood at 5.4 months in February, up 1.2 months, or 28.2 percent, from 4.2 months in February 2025 and slightly above January’s 5.3 months. Economists predicted housing supply will remain largely unchanged from February to March.
Looking ahead, Moore said competing forces and national economic trends could create uncertainty in the housing market in the coming months.
“The Alabama housing market enters the 2026 spring season facing a tug-of-war between seasonal demand and significant macroeconomic headwinds, including higher than expected inflation, labor market concerns, and geopolitical instability,” Moore said. “While the state’s monthly home sales volume increased in February, the broader economic landscape is signaling caution.”
