🏡 Alabama Housing Market Shift: How Buyers Can Take Advantage of Rising Inventory

After years of fast-paced, seller-favored real estate, the Alabama housing market is starting to cool and balance out. While that can feel uncertain to some, it’s good news for buyers — especially in Central Alabama. More homes are hitting the market, and buyers have leverage we haven’t seen in years.

At Inspired Realty Group, we believe opportunity follows preparation. Here’s how today’s market is shifting and what smart buyers should be doing right now.

📊 Alabama Market Snapshot

Recent data shows clear signs of change:

• Inventory is up: Alabama had 20,803 active listings in August 2025 — a 14.7% increase year-over-year

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• Homes are taking longer to sell: Average days on market is now 67, compared to 59 last year

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• Prices are mixed: The median price dropped 5.4% YOY to $222,811, but the average price rose 12.4% due to higher-end and new construction sales

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• Foreclosures are climbing: 563 statewide in August — the highest monthly level in more than 5 years (+27.7% YOY)

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For buyers, this means more choice, less competition, and potential bargains if you know where to look.

🏠 Why More Inventory Helps You

When supply grows, buyers gain power:

• More Negotiating Room: Sellers know homes are taking longer to sell, making them more open to concessions.

• Better Pricing: Fewer bidding wars means you can offer closer to fair market value — or sometimes below.

• Incentives: Sellers may cover closing costs, offer home warranties, or include upgrades to make deals happen.

💡 Strategies for Today’s Buyers

1. Get Pre-Approved Early
   A solid pre-approval shows sellers you’re serious and ready to close quickly. Ask lenders about rate locks — especially with predictions of possible rate drops in late 2025

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2. Watch for Price Drops & Longer DOM
   Homes sitting on the market longer than 45–60 days may be ripe for negotiation. Work with your agent to spot price reductions and motivated sellers.

3. Look at Foreclosures & Distressed Sales
   With foreclosure filings rising, there are more opportunities for below-market deals. IRG can guide you on what’s truly a good buy and how to navigate these transactions.

4. Consider New Construction
   Builders facing longer sales timelines may offer interest rate buy-downs, closing cost credits, or free upgrades. IRG knows which builders in Central Alabama are making the best offers.

5. Don’t Fear Slightly Higher Rates
   You can always refinance later if rates drop. Waiting too long could mean missing great home options and negotiating leverage.

🌟 Central Alabama Hot Spots

• North Jefferson & Walker County: Growing inventory and easy Birmingham access.

• Cullman: Steady pricing and strong family demand — still affordable.

• Tuscaloosa: Sales trending up; attractive for those wanting a college-town vibe.

• Smith Lake Area: Second-home and investment opportunities growing as inventory rises.

🤝 Why Work with Inspired Realty Group

Buying in a shifting market isn’t about luck — it’s about strategy. Our team at IRG:

• Knows where inventory is building and where deals are happening.

• Tracks builder incentives and foreclosure opportunities.

• Negotiates the best price and terms for our buyers.

• Connects you with trusted lenders for the best financing options.

✅ Bottom Line

The tide is turning in Alabama real estate — and buyers finally have room to breathe. If you’ve been waiting for a less competitive market, this could be your moment.

Call or text Inspired Realty Group today to talk about how we can help you find the right home and negotiate the best deal.

🌐 InspiredAlabama.com