Alabama 2025 Home Sales Data Drops, Prices Shift

What’s the Alabama 2025 Market Snapshot (Fast Stats)?

Why the urgency is rising in Alabama’s 2025 housing market becomes clear in the fast stats.

Statewide median sale price sits at 265,000, with December at 284,000 on Redfin and 229,368 typical value on Zillow.

Year-over-year inventory listings are up roughly 25%, creating buyer leverage even as prices stabilize.

Disruption Snapshot

Price Distribution, Regional Breakdown

Price per square foot runs 161 on Realtor.com.

Fall year over year median gains registered 8.6 percent in September, 19.7 percent in October, and 18.5 percent in November.

Active listings total about 40,000 statewide, with 25,900 homes for sale in December, up 4.5 percent. Statewide, 42.3K listings point to moderate selection for buyers.

Homes spend 76 days on market, and December closed sales reached 4,827, up 2.0 percent.

Months of supply averages four.

Q4 2025 RREI confidence printed 59.4, marking an eighth expansionary quarter.

All six components stayed above 50.

Are Alabama 2025 Home Prices Rising or Cooling?

Statewide Price Pulse

Fast stats show a market that is no longer surging statewide, even as select metros keep pushing prices higher.

Median sale price is $265,000, up 1.92% year over year, but down 1.51% month over month.

Price per square foot is $161, up 0.62% year over year and down 0.62% month over month.

Policy impact from rate normalization is cited as supporting steady values.

Active supply has expanded, with active listings topping 20,000 by June 2025 (up 22.7% year over year), which helps explain the recent cooling in monthly pricing.

Three-year gains remain elevated.

Regional Pressure Points

Central Alabama is stabilizing, while Huntsville Madison County is up 5.7% year over year.

For sellers, accurate pricing based on the most recent comparables is becoming essential as the market normalizes.

Climate risk and insurance costs remain a longer-horizon variable in coastal and storm-exposed areas.

Key price signals

Metric	Latest	Direction
State median	$265,000	+1.92% YoY, -1.51% MoM
Price per sq ft	$161	+0.62% YoY, -0.62% MoM

Is Alabama 2025 Becoming a Buyer’s Market (Inventory)?

Scarcity is easing across Alabama’s housing market as active listings climb.

Months of supply is also rising toward a more balanced environment.

Inventory Surge Raises Risk for Sellers

Supply Dynamics

Active listings reached about 20,725 in November 2025.

That’s up 7.5 percent from November 2024.

The state also exceeded 20,000 active listings for six straight months.

Central Alabama, including Birmingham, Jefferson, Walker, and Cullman, reported larger listing pools.

October statewide counts were near 40,000, up 8.23 percent.

Homes are also spending longer on the market, with a statewide 73-day median selling time that gives buyers more room for negotiation.

Months of Supply Nears Buyer Advantage Threshold

Buyer Leverage

Months of supply measured 4.7 in September, 4.9 in October, and 4.8 in November.

This moves the market closer to the four to six month “balanced” range.

North Alabama single-family inventory rose 20.5 percent year over year.

The region is now near 4.5 months of supply, reducing multiple-offer pressure significantly.

What Do Alabama 2025 Days on Market Signal Now?

How fast a home sells has become a sharper warning signal across Alabama in late 2025.

Listings are taking longer to clear.

Similar shifts toward buyer leverage have appeared in Colorado as inventory rose and sellers increasingly offered concessions.

Statewide slowdown

Average days on market reached 76, and Redfin’s December median was 74. That’s up seven days year over year.

Year over year DOM rose 5.26%, and it’s up 11.84% over three years.

Month over month, it stayed flat.

Inventory expanded to 4.8 months. Buyers took longer to decide even as sales rose 2%.

Regional Divergence and Seasonal Patterns

Regional divergence showed up in Auburn at 27 days.

Birmingham and Huntsville trended slower with added supply.

Seasonal patterns in fall and December brought more listings and more price cuts, reaching 15.9%.

Well-priced homes still moved, with 16.1% selling above list.

The sale-to-list ratio held at 97.1%.

How Should Buyers and Sellers Use 2025 Trends in 2026?

As Alabama entered 2026, the late 2025 mix of longer days on market, a 4.8-month supply, and mortgage rates near 6 percent began shifting leverage away from peak-cycle conditions. Unlike 2008, tight lending standards and limited forced selling suggest the market is stalling more than crashing.

Buyer Leverage Tightens

Inventory should edge higher in 2026, and rates near 6 percent may revive demand.

Cooling competition and wage gains improve affordability.

Financing strategies should stay flexible.

Disruption Playbook

• Compare lender fees and lock options.
• Bid below list where days on market lengthen.
• Focus on Huntsville and North Alabama for faster turnover.
• Set renovation priorities for safety, roofs, and HVAC.

Seller Pricing Faces Friction

In-migration and a $231,000 2025 median support values, but more listings punish overpricing.

With permits down 8 percent, condition and timing can offset slower growth.

Assessment

Alabama’s 2025 housing data shows fewer closed sales alongside uneven price movement across metros. Inventory gains and longer marketing times indicate reduced urgency among buyers.

Sellers face a narrower margin for overpricing as price cuts become more common. Buyers encounter more selection but still contend with rate sensitivity and localized competition.

Entering 2026, the market’s direction depends on financing costs, job growth, and how quickly listings accumulate. New construction and insurance costs add further volatility.

https://www.unitedstatesrealestateinvestor.com/alabama-home-sales-drops-prices-shift/?fsp_sid=30874