Alabama Housing Market Sees Strong Growth in May

The housing market in Alabama appears to be thriving, reflecting notable growth in May. Home sales, prices, and overall sales figures have all risen compared to the same period last year, according to the latest report.

In May 2025, there were 6,214 homes sold, a 7.3% increase from April and a 6.5% rise from May 2024. The median home price hit $230,130.

A local expert noted that “Sales in Alabama saw positive movement in May, and consumer sentiment has improved recently.” As more buyers are looking for homes, sellers are benefiting from rising median sales prices. However, listings are at their highest level in over five years, suggesting that the market will remain competitive in the upcoming months.

Total sales across the state reached $1.7 billion in May, marking a 10.4% increase from April and a significant 26.9% rise compared to last year. The average sales price for homes climbed to $274,096, representing an impressive 19.7% increase from the previous year.

Inventory is also growing, with the state recording 19,709 active listings at the end of May—up 24.9% from 15,776 last year. This higher supply will give buyers a wider selection across Alabama’s housing market.

Homes in Alabama spent an average of 58 days on the market in May. The average mortgage rate for a 30-year fixed loan was 6.82% this month, which aligns with the historical average of 6.56% over the past 40 years and 7.68% over the last 50 years.

The broader economic landscape seems stable as well, with Alabama’s unemployment rate remaining steady at 3.3% for eight months, notably lower than the national average of 4.2%. Participation in the workforce has also seen a rise to 57.9%, achieving its highest level in ten years.

The Alabama Economic and Real Estate Report is issued monthly and yearly by the Alabama Association of Realtors®, the largest real estate trade organization in the state, which represents over 19,000 members.