Alabama’s housing market showed renewed momentum in February, with home sales and total sales volume rising month-over-month as lower mortgage rates encouraged buyers to act—though economists caution that broader economic pressures could create uncertainty heading into the spring season.
According to the Alabama Association of REALTORS®’ latest Economic and Real Estate Report, the state recorded 5,028 home sales in February, representing a 5.6% increase from January, as improved affordability briefly boosted demand.
“Home sales in Alabama increased from January to February as interested buyers moved quickly to take advantage of low mortgage rates,” Alabama REALTORS® economist Evan Moore said.
At the same time, the pace of the market accelerated significantly. Homes spent an average of 65 days on the market, a 22% drop from January and down nearly 18% compared to a year ago, signaling that buyers are moving more quickly when favorable conditions emerge.
Despite the monthly gains, the broader trend remains mixed. February sales were still down 14.6% compared to the same time last year, reflecting ongoing affordability challenges and broader market adjustments following recent highs.
Home values, however, continue to climb at a strong pace. The median sales price reached $250,113, marking a 2.3% increase from January and a significant 22.3% jump year-over-year, highlighting continued equity growth for homeowners across the state.
Total sales volume mirrored that pattern. Alabama saw $1.43 billion in home sales in February, a 6.7% increase month-over-month, though slightly below last year’s level.
Inventory conditions showed modest improvement. Active listings climbed to 19,283 homes, up 7.4% from a year ago, while the state’s housing supply reached 5.4 months, moving closer to a more balanced market.
“At the same time, days on market dropped significantly in February, down by 16 days relative to January and by two weeks year-over-year, which was also likely prompted by the more affordable rates,” Moore said.
Looking ahead, Moore warned that rising mortgage rates and broader economic uncertainty could temper the market’s momentum.
“The Alabama housing market enters the 2026 spring season facing a tug-of-war between seasonal demand and significant macroeconomic headwinds, including higher than expected inflation, labor market concerns, and geopolitical instability,” Moore said.
With mortgage rates already climbing again in early March, the coming months will likely determine whether February’s gains signal a sustained rebound—or a temporary boost in an otherwise cautious market environment.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
