For the first time in years, Alabama buyers are truly finding more breathing room. July’s sales dipped 8.6% from June, but instead of signaling a market headed for a downturn, the shift reflects seasonal patterns — and a market increasingly tilting in favor of buyers. 

As families head back to school and structured routines, the real estate market is returning from a post-Covid era marked by intense competition and frenzied activity that primarily benefitted sellers. 

Class is in session: Here’s your rubric for navigating Alabama’s changing market. 

Active listings climbed for the fifth straight month in July, reaching 20,698 — the highest level in five years. Homes are also taking longer to sell, averaging 66 days on the market, compared with 63 in June and 57 from one year ago.

For buyers, that means more choice and less pressure. Instead of rushing to compete in multiple-offer scenarios, many now have time to study the market before making a move.

And sellers? They have more homework. Today’s conditions signal that standing out requires more than simply listing a home. Thoughtful pricing, polished presentation and savvy marketing are essential to earn top marks with buyers.

The median sales price dipped to $228,759 in July, down a slight 2% from June and 1.9% compared with last year. At the same time, mortgage rates fell to their lowest level in nearly 10 months. Together, these shifts are giving buyers some welcome relief.

But challenges remain. Economic uncertainty, a steep revision in national job growth — from initial reports of 147,000 new jobs in June to just 14,000 — and falling consumer confidence could keep buyers on the sidelines. And while affordability has improved slightly, first-time buyers are still grappling with higher costs of living and the hurdle of saving for a down payment.

AAR's economists project that home sales statewide will continue to decrease through the remainder of the summer, but that easing should be interpreted as seasonality, not a sign of market weakness. Inventory is at record highs, mortgage rates are offering relief and median prices are softening — all trends that support buyers.

As Alabama heads into fall, the housing market is less about buzzing activity and more about balance. Buyers have more time, more options and slightly more affordability, while sellers are learning how to adapt in order to move deals forward.