Alabama’s housing market continued its steady climb in June, posting its strongest month for home sales since December 2022 while higher inventory and moderating price growth suggest buyers have more choices than they did earlier in the market’s recovery.
The Alabama Association of REALTORS® reported Monday that 7,138 homes sold statewide in June, marking the fifth consecutive month of sales growth. Sales were up 2.9% from May and 6.2% higher than June 2025, continuing a trend that has persisted despite elevated mortgage rates.
“While mortgage rates remained elevated in June, home sales in Alabama increased for the fifth consecutive month and also rose year over year,” Alabama REALTORS® economist Evan Moore said.
“Even at current levels, mortgage rates remain substantially lower than this time one year ago, and with listings and new home permits on the rise, we predict sales are likely to increase again in July.”
The report also suggests the state’s housing market is becoming more balanced after several years of tight inventory.
The statewide median home price reached $282,139 in June, up 1.1% from May and 13.2% higher than a year ago. However, Moore said price growth has slowed over the past two months, indicating buyers are becoming more sensitive to the cost of homes. He predicted prices will remain relatively unchanged in July.
One of the biggest changes came in the number of homes available for purchase.
Active listings climbed to 21,681, a post-pandemic high. Inventory increased 2.1% from May and 6.8% from June 2025. Homes also remained on the market four days longer than the previous month, suggesting buyers have more time to evaluate their options than they have in recent years.
Despite the increase in available homes, Alabama’s housing supply dipped slightly from 4.4 months in May to 4.3 months in June because sales continued to accelerate. Housing supply estimates how long it would take to sell every home currently on the market at the current sales pace. Even with the slight monthly decline, housing supply remained 2.4% higher than it was in June 2025.
The value of homes sold also continued to grow.
June’s sold dollar volume reached $2.33 billion, an increase of 6.4% from May and 25.3% higher than the same month last year.
The report also pointed to broader economic indicators supporting the housing market.
Alabama’s unemployment rate stood at 3% in May, up from 2.8% in April and the highest level in more than a year, though it remained well below the national rate of 4.3%. Construction led all employment sectors by adding 2,800 jobs, while Education and Health Services added 1,500 jobs and Business and Professional Services added 1,100.
Home construction also continued to trend upward.
According to the report, Alabama issued 1,644 new home building permits in May, a 13.8% increase from the same month last year and the fourth consecutive month of annual permit growth.
With listings and new home permits on the rise and mortgage rates lower than they were a year ago, Moore said Alabama’s housing market is likely to see another increase in home sales during July.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
