May home sales in the state increased 4.0% year-over-year from 5,969 to 6,210 closed transactions. Consistent with seasonal trends, sales increased 11.6% from April. Sales have increased 5.0% year-to-date. Two more resources to review: Quarterly Report and Annual Report.
For all statewide housing data, click here.
Inventory: May listings (22,400) increased 0.7% from April and increased 5.3% from one year ago. Based on the current rate of sales, all active inventory on the market would sell in 3.6 months, the same as it was in May of 2025 and down from 4.0 in April. The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply.
Pricing: The statewide median sales price in May was $278,981, an increase of 3.6% from April and a 2.7% increase from one year ago. The differing sample size (number of residential sales in 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 68 days on the market, 1 day slower than one year ago.
Forecast: May sales were 439 units, or 7.6%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE forecast 5,771 sales for the month while actual sales were 6,210 units. ACRE projected a total of 24,371 home sales year-to-date, while there were 24,797 actual sales through May, a difference of 1.75%.
New Construction: The 1,013 new homes sold represented 16.3% of all residential sales in the state during May. Sales increased 20.3% from April and increased 6.6% from May 2025. The median sales price was $327,789, an increase of 0.7% from April and 3.5% from one year ago.
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