Home Sales Across Alabama Reach Highest Monthly Level Since December 2022 According To Alabama REALTORS® Economic And Real Estate Report
July 21, 2026
With home buying increasing for the fifth consecutive month and sales reaching their highest monthly level since December 2022, evidence indicates that the state’s housing market remains strong according to the Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS® on Monday.
“While mortgage rates remained elevated in June, home sales in Alabama increased for the fifth consecutive month and also rose year over year,” Alabama REALTORS® economist Evan Moore said. “Even at current levels, mortgage rates remain substantially lower than this time one year ago, and with listings and new home permits on the rise, we predict sales are likely to increase again in July.”
Alabama’s 7,138 home sales in June represented a 2.9% increase over May and a 6.2% boost over the same period one year ago.
The median home price of $282,139 rose by 1.1% over May but was $32,935, or 13.2%, higher than June of 2025. Figures reflect that median price growth has slowed over the past two months, which, according to Moore, indicates buyers are becoming more sensitive to the cost of properties, and he predicted that prices will remain unchanged in July.
The sold dollar volume in June, which is the combined sales price of all homes closed during the month, was $2.33 billion, a 6.4% increase month over month and 25.3%, or $0.47 billion, more than the same period last year.
June’s active listings rose to a post-pandemic high of 21,681, which was 2.1% higher than May and increased 6.8% year over year. At the same time, homes remained on the market for four days longer than the prior month, and the economist said that combination of factors points to buyers more carefully evaluating the abundant available options.
Though active listings rose, the 4.3 months of housing supply in June fell slightly from the 4.4 months in May, a direct result of the simultaneous increase in home sales. The housing supply, which estimates the number of months it would take for all homes currently on the market to sell, was also 2.4% higher than June of 2025.
According to the latest figures available, Alabama’s unemployment rate in May was 3%, the highest level in more than a year and a slight increase over April’s 2.8%, but it remains significantly below the national rate of 4.3%. Alabama’s labor force participation rate fell slightly in May to 57.2% and marks the lowest percentage since the state recorded the same figure in September 2023. The U.S. participation rate in May was 61.8%
Construction led all employment growth areas in Alabama by adding 2,800 jobs in May while Education & Health Services added 1,500 jobs, and Business & Professional Services added 1,100 positions.
New home building permits continued a four-month trend of annual increases with the 1,644 permits in May rising 13.8% over May of 2025 and increasing by 2% over April.