According to a monthly analysis released last week by the Alabama Association of Realtors, July brought a decrease in statewide home sales, with numbers dropping 8.6% from June and 2.2% compared to the same period in 2024.

The July report also indicated that total home sales for 2025 are collectively 7.1% higher than the same point in 2024.

Alabama REALTORS® economist Evan Moore noted some of the positive aspects of the market for buyers while acknowledging factors that could negatively affect it.

“Market conditions are continuing to move in favor of buyers in Alabama as mortgage rates are at their lowest level in almost 10 months, supply is increasing, and listings are at new highs,” Moore said.

“But there are signals of concern in the national economy with signs of the job market slowing, consumer sentiment falling, and indicators that inflation may pick up.”

Per the report, Alabama’s median sales price of $228,759 experienced a slight drop of 2% month-over-month and 1.9% year-over-year, which translates to a decrease of $4,457 compared to July of 2024.

The sold dollar volume in July, which is the combined sales price of all homes closed during the month, was $1.75 billion — a 12.9% increase year-over-year but a 5.9% decrease from June.

Additionally, active home listings continued to rise for the fifth straight month and currently sit at a five-year high. The 20,698 homes under listing have increased by 19.2% compared to the 17,368 in July of 2024 and 2% compared to June.

Houses remained on the market for an average of 66 days in July, which is three days longer than June and nine days longer compared to the same period in 2024.

New home building permits in June fell 16.1% compared to 2024, and the 2025 year-to-date numbers are 5.5% lower than the same point last year. The report predicts additional declines going forward based upon economic trends.

Austen Shipley is the News Director for Yellowhammer News. You can follow him on X @ShipleyAusten