Alabama’s housing market gained momentum in May as more homes came onto the market and buyers continued to close deals despite elevated mortgage rates.

According to the latest Alabama Economic and Real Estate Report released Monday by Alabama REALTORS®, the state recorded 6,938 home sales in May, an 11.7% increase from April and an 11.7% increase compared to May 2025. Alabama REALTORS® economist Evan Moore said the gains reflect “strong momentum” in Alabama’s housing market.

Meanwhile, housing inventory continued to improve. Alabama ended May with 21,241 active listings, up 7.8% from one year ago and 1.5% higher than April. Homes spent an average of 61 days on the market, only slightly longer than both the previous month and the same period last year.

Mortgage rates remained a factor for buyers, though conditions improved compared to a year ago. The average 30-year fixed mortgage rate was 6.44% in May, higher than April but below the 6.82% average recorded in May 2025. According to the report, the May rate remained below the 40-year average of 6.52% and the 50-year average of 7.67%, marking the ninth consecutive month mortgage rates have remained below those historical averages.

Housing supply stood at 4.4 months in May, down from 4.8 months in April. Housing supply measures how long it would take to sell all homes currently on the market at the current pace of sales.

New home construction also continued to show strength. Alabama recorded 1,612 new home building permits in April, a 12% increase from the same month last year and the third consecutive month of annual permit growth.

With sales increasing, more homes hitting the market and builders continuing to add new inventory, Alabama’s housing market appears well positioned for a busy summer despite ongoing affordability challenges.

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