Alabama’s housing market continued its rising sales trend in February with an 11.9% uptick over the previous month and a 9.1% increase compared to 2024 according to the Alabama Economic and Real Estate Report released each month by the Alabama Association of REALTORS®.

 Alabama logged 5,886 home sales in February, which represented 627 more than January and 489 more than last year.

 “The Alabama residential real estate market continues to acclimate to a more traditional mortgage rate environment, as evidenced by increasing home sales to start the year and an increasing portion of mortgage holders with rates of at least 6% over each of the last nine quarters,” said David Hughes, economist at Alabama REALTORS®. “Despite broader national economic uncertainties, specific indicators within Alabama suggest a strengthening housing market that is poised for growth.”

The median sales price in February of $211,020 also reflected a 5.3% increase from 2024 but it signaled a 4.1% decrease from January.

 Alabama’s sold volume was $1.44 billion in February, which was a whopping 37.1% increase over last year and a 13.4% increase month-over-month. The economists predicted continuing increases in the near term based upon indicators.

 The state’s 17,956 active listings at the end of February were 27.4% higher than the 14,090 one year ago, but higher inventory provides more opportunities for buyers to select the home that best fits their needs and wants.

 The 409 home foreclosures in February were a 19.3% decrease from 2024 and a 7.5% decrease compared to January.

 At an average of 79 days, homes in Alabama remained on the market for five fewer days in February compared to January, and the economists expect continuing decreases as the weather warms and the Spring home buying season emerges.

 The Alabama Economic and Real Estate Report is published monthly and annually by the Alabama Association of REALTORS®. Click here to view the full monthly and annual reports.