Alabama Home Sales Increase In March As Spring Buying Season Begins According To Monthly Economic Report
April 21, 2026
Despite rising interest rates, the opening of the spring buying season caused home sales across the state to increase during March, but numbers continue to fall behind last year’s figures according to the Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS® on Monday.
“Home sales were up month-over-month in March, increasing by 8.2%, but they lag the same period last year by 12.5%,” Alabama REALTORS® economist Evan Moore said. “Median home prices increased, as well, in both monthly and yearly measures, which is good news for homeowners as it represents continuing equity growth.”
The monthly report showed that Alabama experienced 5,438 homes sales in March, which is 435 more than February but a decrease of 776 compared to the same period one year ago.
At the same time, Alabama’s median home price increased 4.8% month-over-month and a substantial 20.8% year-over-year, growing by $45,139 in March to $262,009.
The sold dollar volume in March, which is the combined sales price of all homes closed during the month, was $1.56 billion, a 9.1% increase month over month, but a 1.9%, or $30 million, decrease compared to the same period last year.
The 20,355 active monthly listings at the end of March were 10.5% higher than the 18,415 of one year ago and roughly 5.6% higher than the 19,283 in February, and the 66 days on average that homes remained on the market was only one day longer than February and five days more than one year ago.
The 6.18% average 30-year fixed mortgage rate in March remains below the rates averaged over the past 40 and 50 years, 6.52% and 7.17% respectively, and signifies a continuing return to normalcy. The rate increase that occurred during the month was the first since May of 2025.
The 5.3 months of housing supply in March was 1.1 months more than the 4.2 months at the same time in 2025 and just slightly lower than February's 5.4 months, but the economists noted that the current figure represents a balanced market that offers stability to both buyers and sellers as inventory remains sufficient to meet demand.
Foreclosures witnessed a 21.3% month-over-month increase and rose 54.8% year-over-year. Even with those increases, foreclosures remain historically low and have not yet returned to pre pandemic levels recorded in 2018-2019. During the pandemic, a federal foreclosure moratorium delayed and suppressed foreclosure activity, contributing to today’s lower baseline. As more bank owned properties come to market, economists say it could create new opportunities for entry-level home buyers and investors.
According to the latest figures available, Alabama’s unemployment rate in January was 2.7%, the third consecutive month that it rested at that figure, which is the lowest since October of 2023 and significantly below the national rate of 4.3%. March was also the fifth consecutive month when the state’s unemployment remained below 3.0%.
National economic indicators that are softening consumer confidence offset by a strong and stable state economy will likely offer a mixed-bag of news for Alabama’s housing market in coming months, according to the report’s future forecast.
“Sellers across Alabama continue to benefit from record-level equity and consistent price growth, while buyers are finding relief in the most diverse inventory landscape in several years,” Moore said. “The statewide market is on track to maintain its traditional seasonal upward trajectory, but it is likely to be more subdued than in previous years.”