The Alabama Real Estate Market: 2025 Trends

🏠 Buying a house in Alabama | 🏘️ Selling a house in Alabama | 🚚 Moving to Alabama

🏡 Home values in Alabama have risen 5.16% over the past year, indicating a seller's market.

📈 Housing inventory (the total number of homes for sale) stands at 19,938. That's about 6.44 months of inventory, indicating a seller's market.

📊 The sale-to-list price ratio (the percentage of listing price sellers are actually getting) is 97.40%, indicating a buyer's market.

How does Alabama compare to the national average?

Data pointValueRankCompared to national avg
Typical home value $232,781[1]#43 of 50 states38.1% lower
Median listing price $329,950[2]#36 of 50 states25.6% lower
Median sale price $294,200[3]#39 of 50 states31.7% lower
30-year mortgage rate 7.06%[4]#46 of 50 states1.2% higher
Median days on market 68[5]#41 of 50 states15.6% longer
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Looking to buy or sell in Alabama?

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Buying a house in the Alabama real estate market

Alabama has an affordability score of 4.7, meaning it takes 4.7 years of the median household income ($62,212) to afford Alabama's median home sale price ($294,200). Because of this, we rank Alabama as the 21st most affordable state for buyers based strictly on prices compared to income.

Data PointValueRankCompared to national avg
Median sale price $294,200[6]#39 of 50 states31.7% lower
30-year mortgage rate 7.06%[7]#46 of 50 states1.2% higher
Median household income $62,212[8]#44 of 50 states19.2% lower
Affordability ratio 4.7#21 of 50 states13.9% lower
Buyers agent commission 2.92%[9]#46 of 50 states6.3% higher
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Who pays for realtor commission in Alabama?

Real estate agents' commissions are technically the responsibility of their respective clients - buyers pay their agents, and sellers pay theirs. Each party signs a contract with their agent promising to pay. However, sellers usually offer to pay for the buyer's agent so they can more easily afford the home.

Who pays closing costs in Alabama?

Sellers are usually responsible for most closing costs, but some closing expenses fall to the buyer. As a buyer, you'll be expected to pay for the mortgage loan origination fee and other lender-related fees, private mortgage insurance, the down payment, an appraisal fee, and a home inspection fee.

Learn more about who pays closing costs in Alabama.

Resources for Alabama home buyers

Selling a house in the Alabama real estate market

According to our detailed survey of Alabama real estate agents, listing agents (those representing the seller) charge an average commission in Alabama of 3.01%, which is the 5th highest in the United States. Buyers' agents charge an average commission of 2.92%, which is the 5th highest in the United States.

Data pointValueRankCompared to national avg
Median listing price $329,950[10]#36 of 50 states25.6% lower
Median sale price $294,200[11]#39 of 50 states31.7% lower
Median days on market 68[12]#41 of 50 states15.6% longer
Buyer's agent commission 2.92%[13]#46 of 50 states6.3% higher
Listing agent commission 3.01%[14]#46 of 50 states6% higher

Resources for Alabama home sellers

Moving to Alabama

According to our recent moving trends survey[15], 9% of Americans indicated that they would choose to move to Alabama if money were no object. Likewise, 11% of survey respondents indicated that they would move to Birmingham among a choice of America's largest cities.

Here's how Alabama cities rank in a number of our research studies.

StudyBest Alabama cityRank
Best Pizza Cities[16]Birmingham24th best
Best Coffee Cities[17]Birmingham42nd best
Best LGBTQ Cities[18]Birmingham47th best
Best Bike Cities[19]Birmingham39th best
Best Commuter Cities[20]Birmingham33rd best
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Where to shop for homes in Alabama

Frequently asked questions

As of October 24, 2025, the median days on market (DOM) in Alabama is 73. On average, it takes about 72 days to sell in Alabama.

Home values have risen in Alabama over the past year. The current median home value is $232,781 and it's projected to rise by 0.52% in the next year.

As of October 24, 2025, sellers in Alabama are typically getting 99.59% of the list price for their homes.

Methodology

Information on market conditions is based on Zillow data as of September 2025, Realtor.com data as of September 2025, and HouseCanary data as of October 24, 2025, unless specified otherwise.

We gathered our commission rate data from a September 2025 survey of 828 of agents nationwide. The survey asked about standard local rates for both listing and buying agents. These data points are averages based on responses we’ve received from 17 agents in Alabama.

Article Sources

[1] Zillow – "Zillow Home Value Index". Updated September 30, 2025.
[2] Realtor.com – "Realtor.com Data Library". Updated September 2025.
[3] Redfin – "Redfin Data Center". Updated September 2025.
[4] Bankrate – "Bankrate". Updated October 2025.
[5] Realtor.com – "Realtor.com Data Library". Updated September 2025.
[6] Redfin – "Redfin Data Center". Updated September 2025.
[7] Bankrate – "Bankrate". Updated October 2025.
[8] US Census – "US Census, 2020 American Community Survey". Updated 2020.
[9] Clever Real Estate – "Clever Real Estate survey of American real estate agents". Updated October 2025.
[10] Realtor.com – "Realtor.com Data Library". Updated September 2025.
[11] Redfin – "Redfin Data Center". Updated September 2025.
[12] Realtor.com – "Realtor.com Data Library". Updated September 2025.
[13] Clever Real Estate – "Clever Real Estate survey of American real estate agents". Updated October 2025.
[14] Clever Real Estate – "Clever Real Estate survey of American real estate agents". Updated October 2025.
[15] Home Bay – "Half of Americans Are Surprised by How Much It Costs to Move". Updated February 26, 2024.
[16] Clever Real Estate – "The 15+ Best Pizza Cities in America". Updated February 12, 2024.
[17] Clever Real Estate – "The Best (and Worst) Coffee Cities in America". Updated January 12, 2024.
[18] Clever Real Estate – "The Most (and Least) LGBTQ-Friendly Cities in America". Updated October 23, 2023.
[19] Clever Real Estate – "The Most Bike-Friendly Cities in the U.S.". Updated July 17, 2023.
[20] Clever Real Estate – "The Best (and Worst) Cities for Commuters". Updated September 21, 2023.

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