Alabama’s Q3 Housing Market

After several years of rapid change, Alabama’s housing market is settling into a steady and sustainable rhythm. The third quarter of 2025 marked a turning point — one defined not by dramatic swings, but by balance and resilience.

A Market Finding Its Footing

Following a surge of activity in early summer, home sales in Q3 cooled slightly from June’s highs. While this quarter saw fewer sales compared to last year, the shift points to stability, not decline. Alabama’s housing market is leveling out into a healthy, predictable pattern that benefits both buyers and sellers.

Inventory Expands, Creating Opportunity

The most notable change this quarter came from inventory growth and slightly longer listing times.

• Active listings rose year-over-year each month — up 19% in July, 15% in August, and 10% in September.
• Homes averaged 66–68 days on market, a roughly 10% increase from last year.

For buyers, this means more breathing room and better choices. For sellers, it’s a sign of a balanced market that still supports strong pricing and demand.

Prices Remain Strong Despite More Listings

Even as supply rose, home values stayed solid:

• July: Median price $228,759 — down slightly month-over-month but consistent with 2024.
• August: Median $222,811 — modest dip, yet average prices up 6.3% year-over-year.
• September: Median $235,246 — the highest of 2025, up 8.6% from last year.

September alone saw $1.7 billion in total sales volume — up 15.6% year-over-year — proving that Alabama’s market remains strong at its foundation.

Economic Conditions Keep the Market Balanced

While national economic uncertainty — including tariffs, consumer caution, and the ongoing government shutdown — added pressure, Alabama’s fundamentals stayed solid.

• Mortgage rates fell from 6.56% to 6.26% during Q3.
• The state’s unemployment rate dropped to 2.9%, one of the lowest in the U.S.

These factors continue to support confidence among both buyers and sellers, keeping the market grounded even in shifting economic times.

Looking Ahead to Q4

As 2025 winds down, Alabama’s housing market appears poised for continued steadiness. Rising inventory, moderate prices, and stable demand suggest a sustainable environment that’s healthy for the long run. The coming months will reveal whether seasonal trends — or national events — will shift the pace heading into the new year.

Thinking about buying or selling in Alabama?
Now is the time to act while the market remains balanced and interest rates are trending down. Whether you’re a first-time buyer, investor, or seller ready to list, I can help you navigate your options with confidence.

📲 Contact Maria Oliver, REALTOR® — (251) 272-1827
🏡 Veteran-Owned | Local Expertise | Honest Guidance

🔗 Read the full report: Alabama REALTORS® Q3 2025 Market Overview