Alabama Housing Market Update: What Today’s Market Means for Buyers and Sellers

Understanding the Alabama housing market doesn’t have to be confusing. With shifting prices, changing inventory levels, and longer days on market, having clear, accurate information matters more than ever.

In this Alabama housing market update, we break down the latest statewide real estate data and explain what it actually means if you’re thinking about buying, selling, or simply tracking your home’s value.

👉 Watch the full market update video below:

Median Home Prices in Alabama Are Rising

The median sales price across Alabama has continued to increase, signaling sustained demand despite market shifts.

• 2025 Median Sales Price: $233,969

• 2024 Median Sales Price: $210,804

• Year-Over-Year Change: Up 11%

This price growth reflects a market that remains competitive, especially for well-priced homes in desirable areas. While buyers have more information and are more cautious than in past years, strong homes are still commanding solid values.

Months of Inventory Shows a Balanced Market

Months of inventory is one of the most important indicators of market health. It measures how long it would take to sell all current listings at today’s pace if no new homes were added.

• Current Months of Inventory: 4.7 months

A market with around 4–6 months of inventory is generally considered balanced. This means:

• Sellers no longer hold all the leverage

• Buyers have more options and negotiation power

• Pricing strategy matters more than ever

Homes that are priced correctly and presented well continue to sell, while overpriced listings are sitting longer.

Homes Are Taking Slightly Longer to Sell

Another important shift in the Alabama real estate market is how long homes are staying on the market.

• Average Days on Market – December 2024: 77 days

• Average Days on Market – December 2025: 78 days

• Change: Up 1.3%

This modest increase signals a return to more normal market conditions. Buyers are taking time to evaluate options, inspections matter, and sellers need strong marketing and realistic expectations.

What This Means for Alabama Buyers

If you’re buying a home in Alabama:

• You may see less competition than in recent years

• You have more time to make informed decisions

• Negotiation opportunities are improving

That said, well-priced homes still move quickly, so having a strategy — and a knowledgeable local agent — remains important.

What This Means for Alabama Sellers

If you’re considering selling:

• Pricing correctly from day one is critical

• Marketing quality matters more than ever

• Homes that show well and are positioned properly still sell successfully

The market rewards preparation and smart strategy.

Why Market Data Matters More Than Headlines

National headlines don’t tell the full story — local and statewide data does. Alabama’s housing market continues to show resilience, but success for buyers and sellers depends on understanding current conditions, not yesterday’s market.

That’s why staying informed — and working with professionals who track real data — makes all the difference.

Need a More Local or Personalized Market Breakdown?

Every area within Alabama behaves differently. Market conditions in Walker County, Jefferson County, Cullman County, Smith Lake, and surrounding communities can vary significantly.

If you’d like:

• A personalized home value

• A neighborhood-specific market analysis

• Guidance on buying or selling in today’s market

Inspired Realty Group is here to help.

📩 Reach out anytime — clarity starts with good information.