Home sales across Alabama began their usual seasonal decline in August, but sales and prices remained higher than a year earlier, according to the Alabama Economic and Real Estate Report released Monday by the Alabama Association of Realtors.
“On the whole, Alabama’s residential real estate market shows strong signs of resilience, even amidst some economic headwinds,” association economist Evan Moore said. “Month-over-month, August’s total sales, along with median and average sales prices, were down compared to July, which is consistent with seasonal expectations, but each showed impressive gains year-over-year.”
Alabama recorded 6,680 home sales in August, up 10.6 percent from August 2025 but down 9.3 percent from July. The monthly decline followed historical patterns as the summer buying season wound down.
The median home price was $277,750, up $43,936, or 18.8 percent, from a year earlier but down 3.5 percent from July. Moore expects prices to decline slightly again in September based on seasonal patterns and economic indicators.
The combined sales price of all homes sold in August totaled $2.19 billion. The report described that as an increase of 29.6 percent, or $590 million, from a year earlier and a decline of 10.2 percent from July’s $2.44 billion.
Active listings totaled 22,365 at the end of August, the highest level since November 2018. New listings reached their highest total for any August in the past five years. Homes spent an average of 68 days on the market, one day longer than in July or August 2025.
The increase in new and active listings pushed the housing supply to 4.6 months, up from 4.1 months in July but below 4.8 months in August 2025. The measure estimates how long it would take to sell all homes currently on the market.
The average 30-year mortgage rate rose for the sixth consecutive month to 6.67 percent in August. That was 8 basis points higher than the 6.59 percent rate a year earlier and 13 basis points higher than July’s 6.54 percent. The rate remained below the 50-year average of 7.67 percent.
The report’s Affordability Index of Homes in Alabama showed that the state’s median household earned 90 percent of the income needed to afford the median-priced home sold in August 2026. The index uses median household income, median sales prices and average 30-year mortgage rates to measure affordability.
New home building permits totaled 1,357 in July, the latest month for which figures were available. That was up 3.9 percent from July 2025 but down from 1,586 in June.
Alabama’s unemployment rate rose for the fourth consecutive month to 3.4 percent in July, its highest level in five years. It remained below the national rate of 4.1 percent.
The state’s labor force participation rate fell slightly to 56.9 percent in July, its lowest level since March 2023, when it reached the same figure. The national participation rate was 61.4 percent in June.
Moore said Alabama’s housing market had withstood economic pressures, but rising interest rates and other factors could slow sales in the coming months.
“Alabama’s residential real estate market posted solid year-over-year sales gains in August, despite late-summer seasonal moderation,” Moore said. “But elevated interest rates and softening consumer sentiment could point to further cooling in the coming autumn months.”
