Seasonal Trends Prove Reliable As Home Sales In Alabama Fell 3% In December But Remained Higher Than Same Period In 2024 According To Economic Report
January 19, 2026
Seasonal trends proved reliable as home sales across the state fell 3% month-over-month in December, but they remained 2.9% higher than the same period in 2024 according to the Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS® on Monday.
“The monthly decline is in line with seasonal trends as the holiday period between November and January are traditionally the worst time for home sales in every region,” Alabama REALTORS® economist Evan Moore said. “The state remains close to five months of supply, which is a traditional benchmark of a balanced market, and figures show that homes in Alabama are maintaining their equity reasonably well."
The monthly report noted that Alabama experienced 5,604 homes sales in December, which represents 174 fewer than November but 157 more than one year ago.
The median sales price in Alabama grew by $33,726 year-over-year to $245,615, a significant 15.9% annual increase but a 2.5% drop month-over-month. At the same time, mortgage rates have continued to decline and recently reached their lowest point in three years at 6.06%, a combination which the economist suggests should boost short-term interest in home purchases.
“It is possible the lower rates and reduced prices may entice buyers to make purchases even before the spring, which is when the home market heats up along with the weather,” Moore said. “Once the traditional spring buying season begins, median home prices are likely to increase, potentially offsetting savings from a lower interest rate, so now is a good time to purchase a home.”
The sold dollar volume in December, which is the combined sales price of all homes closed during the month, was $1.56 billion, a 20% increase over the same period last year, but 3.7% lower than the month prior.
The 19,808 active monthly listings at the end of December, which equate to 4.7 months of supply and signal a balanced market, were 7.3% higher than the 18,468 of the prior year. The 78 days on average that homes remained on the market were just one day longer than December of 2024 but seven days longer than November, which is attributable to the holiday downturn period.
The latest Bureau of Labor Statistics numbers showed Alabama’s labor market has weakened slightly as the agency’s initial employment figures for September, October, and November were adjusted downward, but unemployment claims fell in December, though indicators point to them being back on the rise.
New home building permits were down 8% year-to-date in December, which signifies fewer new homes will be built in the early months of 2026.