Alabama’s housing market showed mixed signals in August, according to the latest Alabama Economic and Real Estate Report released Friday by the Alabama Association of REALTORS®. While sales numbers were down, buyers are finding more affordable opportunities thanks to recent mortgage rate cuts and softening home prices.

Statewide home sales dropped 1.7% from July and were 5.6% lower than August 2024. The median sales price fell to $222,811, down 2.6% month-over-month and 5.4% year-over-year.

Even with fewer sales, the combined dollar volume of homes sold in August reached $1.69 billion. That figure was 6.3% higher than last year, though 3.4% below July’s total.

Alabama REALTORS® economist Evan Moore pointed to improving affordability as a key takeaway.

“When you combine recent declines in average mortgage rates with high inventory across the state, the housing market in Alabama favors buyers,” Moore said.

Thanks to the drop in rates and prices, a monthly 30-year mortgage payment for a home purchased today is $155 less than it would have been in June.

Active listings climbed for the seventh straight month, reaching a five-year high of 20,803 homes—a 14.7% increase over August 2024. With more homes on the market, buyers have greater choice in finding the right fit.

Homes stayed on the market an average of 67 days in August. That’s just one day longer than July, but eight days longer than a year ago—a sign sellers may need to prepare for longer listing times.

Moore noted that the Federal Reserve’s recent rate cut was largely a response to national unemployment trends. While joblessness rose across the country, Alabama’s unemployment fell to 3.0% in July, marking its second consecutive monthly decline and staying well below the national rate of 4.2%.

For buyers, August brought welcome relief in the form of lower prices, cheaper mortgages, and more inventory.

For sellers, conditions remain positive but more competitive, with slower sales, longer listing times, and softer pricing.

Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].