Alabama Home Sales Increase In February As Average Days On Market Fall Dramatically According To Monthly Economic Report
March 23, 2026
Home sales rose across the state in February while the average days on market fell by a dramatic double-digit margin as buyers were spurred to action by lower mortgage rates according to the Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS® on Thursday.
“Home sales in Alabama increased from January to February as interested buyers moved quickly to take advantage of low mortgage rates, but rates climbed in early March as Treasury yields rose with the conflict in Iran,” Alabama REALTORS® economist Evan Moore said.
“At the same time, days on market dropped significantly in February, down by 16 days relative to January and by two weeks year-over-year, which was also likely prompted by the more affordable rates."
The monthly report showed that Alabama experienced 5,028 homes sales in February, which represents a 5.6% increase over January but a decrease of 858, or 14.6%, compared to the same period one year ago.
Alabama’s median home price experienced an increase of 2.3% month-over-month and 22.3% year-over-year, growing by $45,542 to $250,113, which shows homes grew their equity.
The sold dollar volume in February, which is the combined sales price of all homes closed during the month, was $1.43 billion, a 6.7% increase month-over-month, but a slight 0.7% decrease compared to the same period last year.
The 19,283 active monthly listings at the end of February were 7.4% higher than the 17,958 of one year ago, and the 65 days on average that homes remained on the market represent a dramatic 22% decrease from January and 17.7% less than the year prior.
The report forecasts that monthly listings will likely remain unchanged between now and the next AAR Economic Report as the Spring buying season begins to take hold.
The 5.4 months of housing supply in February was 1.2 months, or 28.2%, more than the 4.2 months at the same time in 2025 but just slightly higher than January’s 5.3 months, Economists predict that the housing supply will remain largely unchanged between February and March.
Looking forward, the economist said conflicting forces and national economic trends could spell uncertainty in the housing market in coming months.
“The Alabama housing market enters the 2026 spring season facing a tug-of-war between seasonal demand and significant macroeconomic headwinds, including higher than expected inflation, labor market concerns, and geopolitical instability,” Moore said. “While the state’s monthly home sales volume increased in February, the broader economic landscape is signaling caution.”