Realtysouth — Birmingham, Montgomery and more Alabama home prices are up year after year. (The Bama Buzz)

Over the last few years, the housing market across Alabama cities has seen intense demand and limited inventory. Homes often sell quickly and frequently above asking price.

According to the Alabama Center for Real Estate (ACRE), the median sales price in May was $325,000, an increase of 5.5% from one year ago and an increase of 1.0% from April

According to Zillow (and pictured above), Montgomery saw the 9th greatest home price increase in the country, with a 14.8% price change.

Birmingham follows as the 15th greatest home price increase with a 10.9% price change in one year.

Here is the median selling price over the last five years for homes in Alabama:

May 2025: 271,742
May 2024: 260,287
May 2023: 259,964
May 2022: 247,110
May 2021: 209,424
May 2020: 187,198

According to ACRE, here are the median home prices across Alabama cities, as far as May 2025:

Birmingham: 325,000
Huntsville: 338,000
Mobile: 241,418
Montgomery: 279,911
Athens: 310,000
Baldwin County: 364,950
Calhoun County: 208,000
Dothan: 230,600
Gadsden: 220,000
Lee County: 375,264
Decatur: 244,000
Shoals Area: 225,000

Phenix City: 319,900
Tuscaloosa: 287,452
Cherokee County: 309,500
Covington County: 184,000
Cullman: 238,660
Jackson County: 215,000
Lake Martin Area: 434,000
Marshall County: 259,000
Monroe County: 197,500
Talladega County: 224,450
Wiregrass Region: 218,450

Alabama home sales are up, too

While home prices are up, inventory and sales continue to increase as well.

ACRE’s report for Alabama homes in May shows sales increased 11.2% from April. Residential properties listed for sale increased 14.5% year-over-year from 18,571 to 21,273 listings.

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