The year got off to a pretty slow start for Alabama’s real estate market, with median sales prices, new listings and homes sold down across the board in the state’s major markets.

But March was a different story altogether. Increases in multiple metrics were seen throughout the state last month, a trend experts say will likely continue.

A look at Alabama’s real estate market in March

Some key takeaways from the real estate market in Alabama in March, according to the Alabama Association of Realtors:

Alabama had 5,438 home sales in March,a decrease of 776 from last year but an increase of 8.2% from the previous month.
The median sales price increased by $45,139 compared to a year ago to $262,009. This is an annual increase of 20.8% and a 4.8% increase month-over-month.
The sold volume was $1.56 billion in March 2026, a decrease of $0.03 billion from last March. This marks a 1.9% annual decrease, but a 9.1% increase month-over-month.
The 20,355 active listings at the end of March mark an increase of 10.5% compared to 18,415 one year ago.
The 689 foreclosures in March represent a 54.8% increase year-over-year and a 21.3% increase month-over-month.

Here’s a look at some metrics for the major markets in the state last month:

Metro	Sales (year-over-year change)	Inventory (year-over-year change)	Median Sales Price (year-over-year change)	Days on Market (year-over-year change)
Birmingham	1,252 (+9.8%)	3,966 (+10.6%)	$324,450 (+5.7%)	46 (+9.5%)
Huntsville	646 (+6.3%)	2,394 (-5.4%)	$338,750 (+3.6%)	62 (+6.9)
Mobile	393 (+8.3%)	1,392 (+10.7%)	$245,000 (+2.1%)	67 (+3.1%)
Montgomery	353 (-11.1%)	1,479(+8.2%)	$268,500 (+7.4)%	82 (-6.8%)
Tuscaloosa	274 (+19.1%)	921 (+35.8%)	$276,500 (-0.5%)	53 (-3.6%)

Source: Alabama Center for Real Estate

The spring real estate boom is expected to continue into the next few months, according to experts.

“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

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