Alabama home sales rise for fifth straight month
Home sales climbed for a fifth straight month as listings hit a post-pandemic high, signaling buyers had more options statewide.
Alabama home sales increased for the fifth consecutive month in June and reached their highest monthly level since December 2022, according to the “Alabama Economic and Real Estate Report” released Monday by the Alabama Association of REALTORS®.
“While mortgage rates remained elevated in June, home sales in Alabama increased for the fifth consecutive month and also rose year over year,” Alabama REALTORS® economist Evan Moore said. “Even at current levels, mortgage rates remain substantially lower than this time one year ago, and with listings and new home permits on the rise, we predict sales are likely to increase again in July.”
Alabama recorded 7,138 home sales in June, a 2.9 percent increase from May and a 6.2 percent increase from June 2025.
The median home price rose to $282,139, up 1.1 percent from May and $32,935, or 13.2 percent, from June 2025.
Median price growth has slowed during the past two months, indicating that buyers are becoming more sensitive to housing costs, according to Moore. He predicted prices would remain unchanged in July.
The total dollar volume of homes sold in June reached $2.33 billion, a 6.4 percent increase from May and a 25.3 percent increase from the same period last year. The year-over-year increase amounted to about $470 million.
Active listings rose to a post-pandemic high of 21,681 in June, up 2.1 percent from May and 6.8 percent from June 2025.
Homes also remained on the market four days longer than in May. Moore said the combination of rising inventory and longer market times suggests buyers are more carefully evaluating the available options.
Despite the increase in active listings, the housing supply fell slightly from 4.4 months in May to 4.3 months in June because of the simultaneous increase in home sales.
Housing supply estimates how long it would take to sell all homes currently on the market at the existing sales pace. June’s supply was 2.4 percent higher than in June 2025.
Alabama’s unemployment rate rose from 2.8 percent in April to 3 percent in May, the highest level in more than a year, according to the latest available figures. The state’s rate remained below the national unemployment rate of 4.3 percent.
Alabama’s labor force participation rate fell slightly to 57.2 percent in May, its lowest level since the state recorded the same rate in September 2023. The national labor force participation rate was 61.8 percent in May.
Construction led employment growth in Alabama by adding 2,800 jobs in May. Education and health services added 1,500 jobs, while professional and business services added 1,100 positions.
Alabama issued 1,644 new home building permits in May, continuing a four-month trend of year-over-year increases. The total represented a 13.8 percent increase from May 2025 and a 2 percent increase from April.