Alabama’s housing market eased into its predictable year-end rhythm in October, entering a season when activity traditionally slows. Sales dipped about 5% from September and roughly 2% from last October — a typical cooling pattern as the holidays approach.

But the waning activity didn’t equal a slowdown in strength.

With fewer transactions, buyers were provided with two things that are essential to finding the dream home that is perfect for them — options and inventory — but even as listings continue coming to market, sellers are benefitting from climbing prices.

Here’s a look at what consumers can expect heading into 2026.

After years of economic swings, rapid price jumps, and shifting buyer behavior, Alabama’s 2025 market is showing signs of greater stability and predictability — conditions that benefit both buyers and sellers.

The data behind that shift is clear. Home prices rose nearly 20% year over year, reaching a median of $253,201, even as more listings came online. Inventory climbed to 20,866 active listings, bringing the state close to five months of supply. Listings were also up 8% from last October, giving buyers a wider range of choices and making the market feel less frenzied.

One of the biggest takeaways? Prices held firm despite rising inventory. Even as buyers gained a little more breathing room, sellers continued to benefit from steady showing activity and rising equity.

Altogether, these trends have created a healthier environment on both sides of the transaction — one where buyers have more room to navigate and sellers reap the rewards of their appreciating assets.

October played out as historical markers suggested it would: Sales slowed, the pace of activity eased, and the market transitioned into its quieter season, but this year, the cooldown came with something new: stability.

Inventory is up. Prices are steady. Demand is healthy. And after years of uncertainty, Alabama is closing out 2025 with a housing market that feels more predictable — and more sustainable — than at any point since before the pandemic.

As the year winds down, the market remains well-positioned for a solid start to 2026.