Alabama's housing market found its stride during the second quarter of 2026. Home sales, median prices, transaction volume and days on market all increased month over month as the market transitioned from spring to summer. 

For REALTORS®, the second quarter reflected a market that is becoming more balanced. Buyers had more homes to choose from as inventory grew, while sellers continued to benefit from healthy demand and rising home values. Together, these trends point to a housing market that continues to create opportunities across the state.

The spring homebuying season gained momentum as home sales increased each month during the second quarter. Sales rose from 6,214 transactions in April to 6,938 in May before reaching 7,138 in June — an increase of nearly 15% over the three-month period.

Each month also outperformed the same month in 2025, demonstrating sustained buyer activity despite affordability considerations. While year-to-date home sales remain slightly behind last year's pace, the steady monthly gains suggest Alabama's housing market strengthened as the traditional buying season progressed.

Home values remained on an upward trajectory throughout the quarter. The median sales price increased from $263,518 in April to $279,185 in May before reaching $282,139 in June.

These gains represent significant year-over-year increases:

• April: 15.2%
• May: 16.6% 
• June: 13.2% 

While rising prices can present challenges for some buyers, they also reflect ongoing demand and confidence in Alabama's housing market. For REALTORS®, these trends reinforce the importance of helping buyers understand local market conditions while positioning sellers to capitalize on favorable market dynamics.

One of the quarter’s most encouraging trends was the steady increase in available homes. Active listings grew from 20,928 in April to 21,241 in May before reaching 21,681 in June. At the same time, months of supply remained relatively stable, ending the quarter at 4.3 months.

Foreclosure activity remained higher than 2025 levels throughout the quarter, though monthly figures tell a more nuanced story. Foreclosures totaled 692 in April, increased slightly to 723 in May and declined to 678 in June.

Even with these fluctuations, foreclosure levels in each month remained below their respective pre-pandemic levels from 2019. While year-over-year increases warrant continued monitoring, the decline observed in June may be an encouraging sign as market conditions continue to evolve.

The second quarter demonstrated a prosperous state housing market. Rising home sales, continued price appreciation and increasing inventory levels point to a market that is beneficial for buyers and sellers alike. 

As Alabama moves into the second half of the year, REALTORS® will continue to play an essential role in helping consumers navigate changing market conditions and make informed decisions that support their real estate goals.