Alabama’s housing market showed notable year-over-year growth in April 2025, despite experiencing slight month-over-month declines in key areas such as home sales, prices, and total sales volume, according to the latest Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS®.

A total of 5,791 homes were sold in April, representing a 6.8% decrease from March. However, this figure marks a 10.8% increase compared to April 2024, highlighting continued long-term momentum in the state’s housing sector.

The median home price in April was $224,967. While this reflects a modest 2.2% dip from the previous month, it represents a 13.3% increase from the same time last year. Similarly, the average home sale price rose to $265,232 in April, a 17.8% increase year over year.

The total sold volume for the month was $1.54 billion, down 3.1% from March but up 30.5% compared to April 2024.

Inventory levels also showed improvement. By the end of April, the number of active listings reached 19,144, a 27% increase over the 15,072 listings available one year ago. This expanded inventory provides more options for buyers and reflects broader stability in the market.

Homes in Alabama remained on the market for an average of 57 days in April, four days fewer than in March, indicating a slight acceleration in turnover.

On the financing side, the average 30-year fixed mortgage rate was measured at 6.81% as of May 15. That figure is down from 7.13% at the same point in 2024 and has remained below last year’s levels for four consecutive weeks.

In the broader economic context, Alabama’s unemployment rate held steady at 3.3% for the seventh consecutive month, staying below the national rate of 4.2%. The state’s labor force participation rate also increased for the second straight month, reaching its highest level since March 2019.

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