Alabama homebuyers had more homes to choose from and more time to consider them in September, as the housing market slowed from its summer pace but remained ahead of last year.
The Alabama Association of Realtors’ September Economic and Real Estate Report showed sales and median prices declined from August, following familiar seasonal patterns. Both remained higher than in September 2025.
Alabama recorded 6,292 home sales, up 3.9% from a year earlier and down 5.8% from August. The association said it was the highest September sales total in four years.
Through September, the state had recorded 55,850 sales, putting the year-to-date total 2.8% ahead of the same period in 2025.
September’s median sales price was $275,333, down 0.9% from August but up $40,087, or 17%, from a year earlier. The median represents the midpoint of sales prices, with half of homes selling for more and half for less.
The average sales price also increased 17% from September 2025, reaching $328,445. The association expected October’s median price to remain roughly unchanged.
The combined value of homes sold in September totaled $2.07 billion, up 21.8%, or about $370 million, from a year earlier. That was down 5.5% from August’s $2.19 billion.
Year-to-date sales volume reached $17.39 billion, an increase of 19.7% over the same period in 2025.
For buyers, the growing selection of homes offered an encouraging sign. Alabama ended September with 22,525 active listings, up 8.5% from a year earlier and 0.7% from August, marking the eighth consecutive monthly increase.
Homes sold during September spent an average of 71 days on the market — three days longer than both August and September 2025. Greater selection and longer selling times could give prospective buyers more room to compare properties and negotiate with sellers.
Housing supply increased to 4.8 months, compared with 4.6 months in August and 4.7 months a year earlier. The measure estimates how long it would take to sell the available homes at the current sales pace.
The association projected supply would reach five months in October, while active listings would remain roughly unchanged.
Still, additional choices did not remove the challenge of financing a home. The average 30-year fixed mortgage rate was 6.86% in September, up from 6.67% in August and 6.35% in September 2025, according to the report.
September marked the seventh consecutive monthly increase in the average rate, and rates continued climbing into October.
“Increasing inflation, elevated Treasury yields, and hawkish Fed signals have pushed mortgage rate forecasts above 7% while deteriorating consumer sentiment and rising inflation expectations may create headwinds for housing demand,” Alabama Realtors economist Evan Moore said.
Despite those challenges, Moore said the final months of the year could offer opportunities for motivated buyers.
“While rates are likely to remain elevated, and there is pessimism nationally, the fourth quarter is a good time to buy a home in Alabama,” Moore said. “Median prices are likely to decline as sellers adjust to market realities, active listings are near multi-year highs, and homes are spending more time on the market, creating a more favorable environment for prospective buyers.”
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
