September 2025 Mobile, AL Real Estate Market Update

The housing market has been full of headlines this month, and some of them sound downright confusing. Let’s break it down in what’s happening nationally with rates and sales, and what it means here in Mobile.

Rates, the Fed, and “Counterintuitive” Headlines

On September 17, the Federal Reserve cut short-term interest rates by 0.25%. You might expect mortgage rates to fall too, but instead, the average 30-year rate ticked up from 6.13% to 6.37%.

That sounds backward, right? Here’s the catch: markets move on expectations, not surprises. Bond traders had already priced in the Fed’s move earlier in the month, which is why rates fell from 6.53% to 6.13% before the Fed even acted. After the cut, rates bounced slightly higher as the market recalibrated.

The big picture: mortgage rates today are still lower than they were at the start of September, and most economists expect gradual easing through the end of the year. That’s good news for Mobile buyers who’ve been waiting on the sidelines.

National Sales Snapshot

• New Home Sales: Spiked in August to 800,000 units (highest since Jan 2022), with the South leading the surge. Median price: $413,500 (up 5% MoM).
• Existing Home Sales: Still sluggish at a 4 million annual pace, down 0.2% MoM. Median price: $423,000.

Why the difference? New home sales reflect August buyers who jumped at builder incentives. Existing home sales reflect contracts signed earlier this summer when rates were higher. Expect those numbers to pick up when September’s data drops.

Local Market — Mobile, AL

Here in Mobile, the national story overlaps with some unique local dynamics:

• Prices: Redfin reports a median sale price of $220,000 in August, up 7.8% YoY, while Zillow’s value index shows a slight 1% annual dip — a reminder that list vs. sold prices can diverge.
• Inventory & Days on Market: Homes are sitting longer, with median days on market at 65 (FRED). Active listings hover around 1,100 — much healthier supply than a year ago.
• Buyer Behavior: More than half of homes are selling below asking price, according to Southern Bay Realty, as sellers adjust expectations.
• Investor Activity: Alabama leads the nation in institutional purchases (Axios). Locally, lower-priced homes in Mobile are hot targets for cash investors.

What This Means for Buyers & Sellers in Mobile

• For Buyers: You’re gaining leverage. More homes to choose from, sellers making concessions, and mortgage rates that could keep easing into fall.
• For Sellers: Pricing it right is key. Overpricing will lead to sitting on the market and eventual price cuts. Well-kept homes in desirable neighborhoods still move quickly, but buyers are pickier.
• Seasonal Advantage: Realtor.com notes mid-October is historically the “best week to buy,” thanks to higher inventory and lower demand. Mobile is likely to follow that seasonal pattern this year.

Looking Ahead

• The Fed may cut rates again in October and December — but markets have already priced in much of that optimism.
• Local inventory is creeping higher, which should continue balancing conditions.
• Long term, demographics still point to more demand. Household formation has lagged in recent years but is expected to rebound.

Bottom Line

Mobile’s market is no longer the frenzy of 2021, but that’s not a bad thing. For buyers, this fall could present a sweet spot — more homes on the market, negotiable sellers, and gradually improving mortgage rates. For sellers, realistic pricing and strong presentation are the name of the game.

If you’re curious what this shifting market means for your next move in Mobile, let’s chat. Contact me at (251)-272-1827.