July's market data is an encouraging sign for REALTORS®. Despite elevated mortgage rates, July home sales climbed to their highest level in nearly four years, signaling resilient buyer demand.

Alabama recorded 7,361 home sales in July, an impressive 19.8% increase from July 2025 and a 3.1% increase from June. It also marked the sixth consecutive monthly increase in home sales.

A closer look at the numbers shows just how much momentum the market has built this summer and what REALTORS® may be able to expect as the season winds down.

July’s numbers stand out not only because transactions increased, but because they reached a level Alabama has not seen in nearly four years. That milestone points to a stronger summer buying season despite affordability pressures and elevated borrowing costs.

The median home price also continued its upward trajectory. At $287,750, July’s median was 19.6% — nearly $50,000 — higher than last year.

The combination of stronger sales activity and rising prices points to continued demand across the state’s housing market. Based on current indicators, economists expect prices to continue increasing modestly as seasonal demand lingers.

One of the most encouraging developments for consumers is the continued growth in available inventory. Alabama had 22,006 active listings in July, a new post-pandemic high. That was 6.3% higher than the 20,698 listings recorded a year ago.

For buyers who have felt limited by inventory in recent years, that growth provides a healthier selection of homes to consider. At the same time, the increase in inventory has not slowed sales. In fact, activity was strong enough that the state’s months of housing supply declined to 4.1 months in July from 4.3 months in June. Supply was also below the 4.7 months recorded in July 2025.

That’s an important distinction: Inventory is growing, but buyer demand is keeping pace.

Homes spent an average of 67 days on the market in July — two days longer than in June and one day longer than a year ago — giving buyers slightly more time to consider their options. Meanwhile, sellers continue to benefit from rising prices and strong home equity.

That creates a market with advantages on both sides:

• Buyers have more choices and marginally more time to make decisions.
• Sellers continue to benefit from rising home values and meaningful equity.
• REALTORS® can help consumers navigate a market that offers more options without losing the momentum seen earlier this year.

July’s sold dollar volume reinforces just how active the market has become. The combined value of all homes closed during the month reached $2.44 billion, up a remarkable 39.4% from July 2025 and nearly 5% from June.

The average 30-year fixed mortgage rate rose throughout July, climbing from 6.43% at the beginning of the month to 6.66% by July 30, marking the fifth consecutive monthly increase in rates.

Still, July’s average of 6.54% was 18 basis points below the 6.72% average recorded in July 2025. It was also roughly in line with the 40-year average of 6.52% and remained well below the 50-year average of 7.67%.

Even as rates moved higher during the month, buyers continued to enter the market at a strong pace. Any mortgage rate relief in the months ahead could provide another tailwind for demand.

Economists expect Alabama’s home sales to remain above year-ago levels as summer demand carries into early fall. With more inventory available and the possibility of some rate relief, consumers may have even more opportunities to make their next move.

For Alabama REALTORS®, July’s data offer a clear takeaway: The market is becoming more balanced without losing momentum. Buyers have more options, sellers continue to benefit from rising values and demand has remained resilient despite elevated borrowing costs. That combination gives REALTORS® an important role in helping clients navigate the opportunities on both sides of today’s market.