Home Sales Decrease As Sales Prices Increase Across State During January According To Monthly Economic Report
February 23, 2026
Home sales took a traditional seasonal tumble in Alabama in January, but median sales prices continued to rise year-over-year according to the Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS® on Thursday.
“While January sales saw a seasonal dip, the state’s robust local economy, characterized by a steady 2.7% unemployment rate and a downward trend in unemployment claims, provides a solid foundation for a rebound in spring sales activity,” Alabama REALTORS® economist Evan Moore said. “Furthermore, with active listings up 7.5% year-over-year, the increased inventory should provide prospective buyers with more options, potentially offsetting the recent declines in consumer confidence.”
The monthly report noted that Alabama experienced 4,761 homes sales in January, which represents a 15% decrease from December and 9.5% less than one year ago.
The median sales price in Alabama grew by $36,052 year-over-year to $244,520, a significant 17.3% annual increase and a slight 0.4% drop month-over-month.
The sold dollar volume in January, which is the combined sales price of all homes closed during the month, was $1.34 billion, a 5.5% increase over the same period last year, but roughly 14.1% less than December.
The 19,073 active monthly listings at the end of January were 7.5% higher than the year prior, and the 81 days on average that homes remained on the market were just three days longer than December but 3.5% less compared to January of 2025.
The report forecasts that monthly listings will decrease by about 2.9% to18,524 between now and the next AAR Economic Report if trends continue.
The 5.3 months of housing supply in January was almost a full month more than the 4.4 months at the same time in 2025, but current levels continue to signal a relatively balanced market. Economists predict that the housing supply will decrease by roughly 1.9% between January and February.
“Consumer confidence fell to its lowest level since 2014 last month, but Alabama’s economy continues to remain relatively strong,” Moore said. “The Federal Reserve is planning to loosen rules to help increase competition in mortgage lending which should help to lower mortgage rates.”