Alabama home sales increased in March as the spring buying season began, though overall activity continues to lag behind last year’s pace, according to the latest monthly report from the Alabama Association of REALTORS®.
The Alabama Economic and Real Estate Report shows the state recorded 5,438 home sales in March, an increase of 435 transactions from February, representing an 8.2% month-over-month gain. However, that figure remains 776 sales, or 12.5%, below March 2025 totals.
“Home sales were up month-over-month in March, increasing by 8.2%, but they lag the same period last year by 12.5%,” Alabama REALTORS® economist Evan Moore said. “Median home prices increased, as well, in both monthly and yearly measures, which is good news for homeowners as it represents continuing equity growth.”
Home prices continued to climb, with the median price reaching $262,009 in March, up 4.8% from February and 20.8% year-over-year, an increase of $45,139 compared to last year.
Total sold dollar volume reached $1.56 billion, marking a 9.1% increase from February, though it was down 1.9%, or about $30 million, compared to March 2025.
Inventory levels expanded during the month, with 20,355 active listings at the end of March, up 5.6% from February and 10.5% higher than a year ago. At the same time, homes spent an average of 66 days on the market, one day longer than February and five days longer than the same period last year.
The state’s housing supply stood at 5.3 months in March, slightly below February’s 5.4 months but above the 4.2 months recorded a year earlier, a level economists describe as a balanced market.
Mortgage rates also edged upward, with the average 30-year fixed rate at 6.18% in March. While that marks the first increase since May 2025, it remains below the 40-year average of 6.52% and the 50-year average of 7.17%.
Foreclosure activity increased during the month, rising 21.3% from February and 54.8% compared to March 2025. Despite the uptick, foreclosures remain below pre-pandemic levels seen in 2018 and 2019.
The state’s unemployment rate stood at 2.7% in January, marking the third consecutive month at that level, the lowest since October 2023, and below the national rate of 4.3%.
Looking ahead, the report suggests a mixed outlook for the housing market.
“Sellers across Alabama continue to benefit from record-level equity and consistent price growth, while buyers are finding relief in the most diverse inventory landscape in several years,” Moore said. “The statewide market is on track to maintain its traditional seasonal upward trajectory, but it is likely to be more subdued than in previous years.”
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
