Alabama’s real estate market kicked off the spring home-buying season with a strong showing in March, with both home sales and prices seeing significant year-over-year and month-over-month increases, according to the latest Alabama Economic and Real Estate Report from the Alabama Association of Realtors.
RELATED: Report: February shows continuing monthly and yearly increases in home sales across Alabama
The report showcased that 6,214 homes were sold across the state in March, marking a 23.2% increase compared to March 2024 and a 5.6% rise from February. Alongside the spike in sales, Alabama’s median home price jumped 9% from the previous month and 13.4% compared to the same time last year.
David Hughes, an economist with the Alabama Association of REALTORS®, noted that the market showed “robust momentum” heading into spring, though he cautioned that rising mortgage rates and a dip in consumer confidence could pose challenges in the coming months.
Despite those concerns, Alabama’s economy continues to show resilience. The state posted the fifth-highest GDP growth in the nation during the fourth quarter of 2024, outperforming all Southeastern states except Mississippi.
Total home sales volume reached $1.59 billion in March, reflecting a substantial 44.5% increase from a year ago and a 10.4% gain from February. The average home sale price also rose significantly to $255,737—a 17.1% jump year-over-year.
The report also pointed to improved inventory, with 18,415 active listings on the market at the end of March, up 26.2% from the 14,587 listings available at the same point last year.
Homes spent an average of 61 days on the market in March, down 18 days from February, signaling a quickening pace in property turnover as the spring season begins.
A new addition to this month’s report, “Mortgage Rates Over The Decades,” places today’s interest rates in historical context. It highlights the all-time high of 18.63% in October 1981 and the record low of 2.65% in January 2021, helping consumers better understand current conditions within a broader timeline.
The Alabama Economic and Real Estate Report is published monthly and annually by the Alabama Association of REALTORS®, which represents more than 19,000 members statewide.
