Alabama’s housing market showed strong signs of growth in May, with increases in home sales, prices, and total sales volume compared to both the previous month and the same time last year, according to the latest Alabama Economic and Real Estate Report from the Alabama Association of REALTORS®.

A total of 6,214 homes were sold in May 2025, marking a 7.3% increase from April and a 6.5% increase compared to May 2024. The median home price rose to $230,130, which is 2.3% higher than April’s figure and 6.7% higher—or $14,510 more—than a year ago.

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“Home sales picked up in May in Alabama, and improving consumer sentiment in June may bode well for the housing market,” said Alabama REALTORS® economist Evan Moore. “Buyers continue to enjoy an increased number of listings in the state while sellers saw an increase in the median sales price in May, but market conditions will likely continue to favor buyers over the next few months as listings are at their highest level in more than five years.”

The total sold volume across the state reached $1.70 billion in May, a 10.4% jump over April and a 26.9% surge compared to the same period last year. The average home sale price climbed to $274,096, representing a 19.7% increase year-over-year.

Inventory also continued to expand. The state recorded 19,709 active listings at the end of May, a 24.9% increase from the 15,776 listings reported in May 2024. This rise in supply gives buyers greater selection across the state’s housing market.

Homes in Alabama spent an average of 58 days on the market in May, just one day longer than in April. Mortgage rates, tracked for the first time as part of the monthly report, showed a 30-year fixed rate average of 6.82% in May. This falls within the historical range of 6.56% over the past 40 years and 7.68% over the past 50 years.

The broader economic picture remained stable, according to the report. Alabama’s unemployment rate held steady at 3.3% for the eighth consecutive month, remaining below the national rate of 4.2%. Additionally, the labor force participation rate increased to 57.9%, the third straight month of growth and the highest level in at least a decade.

The Alabama Economic and Real Estate Report is published monthly and annually by the Alabama Association of REALTORS®, the state’s largest real estate trade organization representing more than 19,000 members.

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