Alabama real estate market: a new outlook for spring

As we inch closer to the beginning of spring, we have our eyes closely set on the real estate market in Alabama. Home sales have seen a downward trend across the state, while median sales prices have increased statewide.

So, what does the market look like heading into spring? According to industry experts, we have reason to feel positive about the market in the coming months.

What the real estate market could look like this spring

The beginning of the year saw a lag in total home sales and an increase in listings, which usually indicates that fewer people are buying right now.

Here are the January real estate stats statewide, according to the Alabama Association of REALTORS:

• Alabama had 4,761 home sales in January, a decrease of 498 from last year and a 15% decrease from the previous month.
• The median sales price increased by $36,052 compared to a year ago to $244,520. This is an annual increase of 17.3%, but a 0.4% decrease month-over-month.
• The sold volume was $1.34 billion in January 2026. This marks a 5.5% annual increase, but a 14.1% monthly decrease.
• The 19,073 active listings at the end of January mark an increase of 7.5% compared to 17,735 one year ago.
• The 540 foreclosures in January represent a 22.2% year-over-year increase. It is also a 1.7% increase in foreclosures since last month.

RealtySouth CEO Richard Grimes provided some insight on the market moving forward, given where it has been trending in recent months. He said there are several trends he is watching closely that give him confidence about the direction of our housing market.

“Consumer confidence is always influenced by a wide range of factors—many of which people may not consciously recognize. Political dynamics, global events, economic news,and everyday financial concerns all shape how buyers and sellers approach major decisions like purchasing a home.

Despite those broader influences, housing remains one of the most stable long-term investments available to families.”

Richard Grimes, CEO, RealtySouth

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Grimes said that over the past couple of years, the market across Central Alabama has been characterized by historically low inventory levels combined with home prices that have remained firm following the post-inflation surge in values.

While this has been good news for homeowners, it has created challenges for many buyers—particularly first-time buyers trying to enter the home ownership market for the first time.

“Looking ahead over the next several months, we expect to see mortgage rates ease slightly while inventory remains moderately tight. We are beginning to see more homeowners consider listing their properties this spring as they adjust to the “new normal” of mortgage rates. Even a modest increase in listings can create more opportunities for buyers while still supporting healthy home values for sellers.”

Richard Grimes, CEO, RealtySouth

For 2026, Grimes said his expectation is that the Alabama real estate market will continue to move forward at a healthy pace.

Based on current trends, he said he anticipates roughly 4% more homes being sold across the state compared to 2025, reflecting steady demand and improving market balance.

“As always, real estate remains local. Neighborhood-level trends, pricing, and demand can vary significantly from one community to another.

Our team closely tracks these local conditions so we can help both buyers and sellers make informed decisions in a changing market. We remain optimistic about the months ahead and look forward to helping our clients navigate the opportunities this spring market will bring.”

Richard Grimes, CEO, RealtySouth

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