Alabama home sales reached $19.37 billion in 2025

In a reversal of real estate fortune, home sales in Alabama were up in 2025 compared to 2024, showing an uptick in several metrics–including number of homes sold, total sales volume and median sales price.

According to the Alabama Association of Realtors, Alabama saw $19.3 billion in home sales volume in 2025, an increase of more than 20% over 2024.

Alabama real estate market rebounds in 2025

Here are some takeaways from the 2025 Alabama Economic & Real Estate Report:

• Alabama had 71,485 home sales in 2025. This is an increase of 2,656 sales when compared to 2024.
• The median sales price increased by $23,165 compared to 2024, rising to $233,969. This is an annual increase of 11.0%.
• The sold volume was $19.37 billion in 2025, an increase of $3.27 billion from 2024. This is approximately a 20.3% annual increase.
• The 19,744 average active listings in 2025 are an increase compared to the 16,786 of a year ago. This is the highest average in 6 years yet remains below the 2019 pre-pandemic average of 20,478.
• There were 6,039 foreclosures in 2025 representing a 9.3% increase compared to the 5,524 foreclosures in 2024.

While median and mean home prices in Alabama rose in 2025, the state maintains a distinct affordability advantage compared to the South and national averages. However, the supply side of the market is entering a new phase of constraint. 

After a peak in 2024, building permits for new single-family units in Alabama declined by roughly 8% through October 2025.

According to the Alabama Economic & Real Estate Report, this reduction suggests that “the supply of new construction may tighten in 2026,” potentially shifting the market balance back toward existing inventory or placing further upward pressure on prices.

“Looking toward 2026, signs remain cautiously optimistic for the Alabama housing market. The state continues to be a leader in the Southeast for net migration, recently ranking as the ninth most ‘moved to’ state in the country.”

Alabama Economic & Real Estate Report

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