Rising Inventory, Lower Mortgage Rates, and Strong Employment Fuel Housing Activity Across the State as Prices Reach New Highs
MONTGOMERY, Ala. | Alabama's housing market accelerated sharply in May as home sales, median prices, and overall transaction volume climbed amid lower mortgage rates, increased inventory, and continued job growth, according to new data released by the Alabama Association of Realtors.
The latest Alabama Economic and Real Estate Report paints a picture of a market benefiting from favorable economic conditions while still confronting affordability concerns that could shape buyer behavior in the months ahead.
Statewide, Alabama recorded 6,938 home sales in May, representing an 11.7% increase from April and an 11.7% increase from May 2025. The growth reflects renewed confidence among buyers entering the traditional spring and summer home-buying season.
"With increased listings and the average 30-year fixed-rate mortgage roughly 35 basis points lower than this time last year, there is room for continuing growth in home sales throughout the summer buying season," said Alabama Realtors economist Evan Moore.
