July Home Sales Set New Four-Year Benchmark And Median Prices Continue To Rise During Summer Buying Season Across Alabama
August 25, 2026
According to the Alabama Economic and Real Estate Report released by the Alabama Association of REALTORS® on Thursday, home sales increased for the sixth consecutive month and reached the highest benchmark in almost four years as the summer buying season continued across the state during July.
“Mortgage rates climbed through July, yet home sales in Alabama continued to rise for the sixth consecutive month as well as year-over-year,” Alabama REALTORS® economist David Hughes said. “While there are signs of pessimism nationally, there may be rate relief in the near future, and there are indicators that the state’s housing market will be more active than this time last year to end the summer.”
Alabama’s 7,361 home sales in July marked a substantial 19.8% increase over the same period in 2025 and a 3.1% boost from June’s reported figures.
Median home prices continued their upward trajectory, as well, with the $287,750 of July increasing by $47,166, or 19.6%, over last year’s monthly number and rising by 2% compared to June. Based upon indicators, the economist predicts that prices will continue to slightly increase month-to-month as the seasonal demand lingers.
The sold dollar volume in July, which is the combined sales price of all homes closed during the month, was $2.44 billion, a massive 39.4% increase over the same period last year and 4.7% higher than June.
July’s 22,006 active listings represent a new post-pandemic high and are 6.3% more than the 20,698 of one year ago while 1.5% higher than June. During July, homes remained on the market for two days longer than the prior month, and one day longer than a year ago.
Though active listings rose, the 4.1 months of housing supply in July fell slightly from June’s 4.3 months, a direct result of the continuing increase in home sales and buying activity. The housing supply, which estimates the number of months it would take for all homes currently on the market to sell, was also lower than the 4.7 months of July 2025.
The average 30-year mortgage rate of 6.54% recorded in July was 18 basis points lower than the 6.72% rate of one year ago, and while it was slightly above the 40-year average, it remained well below the 50-year average rate of 7.67%.
New home building permits in June, which represent the latest available figures, totaled 1,586, a 19% increase over June of 2025 but a slight drop from the 1,644 record in May, which ends a four-month upward trend.
Also according to the latest figures, Alabama’s unemployment rate in June was 3.2%, marking the third consecutive monthly increase and the highest number in five years, but it remains a full percentage point below the national rate of 4.2%. Alabama’s labor force participation rate fell slightly in June to 57.1% and marks the lowest percentage since the state recorded the same figure in June of 2023. The U.S. participation rate in June was 61.5%.
Hughes said the overall real estate picture provided by the economic figures indicate there are current advantages for both buyers and sellers across Alabama, and he predicts that the healthy home market will continue throughout the summer.
“Sellers continue to gain from strong equity growth, while buyers benefit from a healthier pool of active listings compared to previous years. Additionally, with the ongoing strength in new home building permits, which rose 19.0% year-over-year in June, the market continues to see fresh inventory enter the pipeline,” the economist said. “Looking ahead to August, home sales are forecasted to rise year-over-year, signaling that robust homebuyer sentiment will continue to support the market through the close of the summer season.”