ALABAMA REAL ESTATE JOURNAL

Montgomery-area home sales are down 1.5% year-over-year in May

According to the Montgomery Area Association of REALTORS, May home sales in the area decreased 1.5% year-over-year from 454 to 447 closed transactions. Following seasonal trends, sales increased by 5.4% from April. Two more resources to review: Quarterly Report and Annual Report. 

For all Montgomery-area housing data, click here. 

Inventory: Homes listed for sale increased 2.6% from April and increased 4.2% year-over-year from 1,489 to 1,552 listings. Months of supply decreased 0.1 months in May 2026 from the previous month. Months of supply are up from last year’s supply of 3.3 months, reflecting a market where sellers generally have elevated bargaining power. 

Pricing: The median sales price in May was $275,000, a decrease of 1.8% from one year ago and an increase of 6.7% from April. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. 

Homes sold in May averaged 72 days on the market (DOM), 9 days faster than May 2025. 

Forecast: May sales were 15 units, or 3.2%, below the Alabama Center for Real Estate (ACRE) monthly forecast. ACRE projected 462 sales for the month, while actual sales were 447 units. ACRE forecasted 1799 sales in the area year-to-date, while actual sales were 1778 units, a difference of 1.2%. 

New Construction: The 74 new homes sold represents 16.6% of all residential sales in the area in May. Total sales decreased by 6.3% year-over-year. The median sales price in May was $354,895, an increase of 1.4% from one year ago and an increase of 4.7% from April. 

Click here to view the entire monthly report. 

The Montgomery Residential Monthly Report is developed in connection with the Montgomery Area Association of Realtors. 

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