“With inventory levels starting the new year higher than in previous cycles and mortgage rates lower than those of much of the previous three years, Alabama is well-positioned to sustain the growth momentum established over the past twelve months.”

The 71,485 home sales across Alabama in 2025 increased by 3.9% over the prior year, which reversed the staggering 18% decline that the state suffered in 2024. The median sales price in 2025 of $233,969 is the highest on record in Alabama history and represents an 11% increase, dwarfing the 1.7% increase experienced nationally.

The total sales volume in 2025, which is the total amount of all home sales throughout the year, was $19.37 billion, a 20.3%, increase over 2024.

The 19,744 average active listings in 2025 are a 17.6% increase compared to the 16,786 of 2024 and represent the highest average in six years, but it remains below the 2019 pre-pandemic average of 20,478. Higher inventory offers buyers more selection and a better opportunity to find the perfect home that fits their needs and desires.

The 4.7 months of housing supply in 2025 remained close to the five months of supply that economists consider a traditional benchmark of a balanced market.

Houses remained on market an average of 69 days in 2025 with the 57 days in April totaling the fewest number of days during the year, and the 84 days in January being the highest. While the days on market rose 9.5% between 2024 and 2025, they remained six days below 2019’s pre-pandemic number.
 
Alabama’s economy remained strong as the unemployment rate fell below 3% for the last six months of the year, which ranked among the lowest in the nation, and for a three-month period between April and June, the state’s labor force participation rate was the highest in a decade.