Seasonal trends held steady in Alabama’s housing market in December, with home sales declining month over month but remaining higher than the same period last year, according to a new economic report.
Home sales across the state fell 3% from November to December but were still 2.9% higher than December 2024, according to the Alabama Economic and Real Estate Report released Monday by the Alabama Association of REALTORS®.
“The monthly decline is in line with seasonal trends as the holiday period between November and January are traditionally the worst time for home sales in every region,” Alabama REALTORS® economist Evan Moore said. “The state remains close to five months of supply, which is a traditional benchmark of a balanced market, and figures show that homes in Alabama are maintaining their equity reasonably well.”
The report shows 5,604 homes were sold statewide in December, down 174 from November but up 157 compared to one year earlier.
Alabama’s median home sales price rose $33,726 year over year to $245,615 — a 15.9% annual increase — though prices dipped 2.5% from November.
Mortgage rates have continued to trend downward and recently reached their lowest point in three years at 6.06%, a combination Moore said could spur buyer interest ahead of the traditional spring market.
“It is possible the lower rates and reduced prices may entice buyers to make purchases even before the spring, which is when the home market heats up along with the weather,” Moore said. “Once the traditional spring buying season begins, median home prices are likely to increase, potentially offsetting savings from a lower interest rate, so now is a good time to purchase a home.”
The total sold dollar volume for December reached $1.56 billion, a 20% increase over December 2024, though it was 3.7% lower than November.
Active listings at the end of December totaled 19,808, representing 4.7 months of supply. Listings were up 7.3% from the same period last year. Homes spent an average of 78 days on the market.
Labor market data showed slight softening, with employment figures revised downward for recent months. New home building permits were down 8% year to date in December, signaling fewer new homes early in 2026.
