Alabama Real Estate Market May 2022: Forecasts + Trends

Alabama real estate trends (May 2022)

How is the real estate market in Alabama?
🏠 Average home value: $206,044	📈 1.22% home value increase month over month
💰 Median sale price: $259,200	⏳ 45 days on the market
🔑 Homes on the market: 11,104	📆 2.2 months of housing inventory
🏦 30-year mortgage rate: 5.64000%	💵 Average income: #N/A
State of the market: B+
Homes are flying off the market in Alabama, causing sales prices to climb steadily. Despite the faster sales, inventory is starting to improve, which may cause the market to cool.
_{Data last updated May 2022}*

Alabama's population is growing as new residents choose the state as their home — and it's easy to understand why.

From the Appalachian foothills to the Gulf of Mexico, Alabama boasts 22 state parks that showcase the state's natural beauty. Residents enjoy mild winters and subtropical summers, with coastal breezes and plenty of sunny days.

The Yellowhammer State also has a rich history, from its capital in Montgomery to Birmingham — two cities that played crucial roles in the Civil Rights Movement.

If you're thinking of buying or selling in Alabama, these Alabama housing predictions and stats can help you make an informed decision.

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Selling a home in Alabama

Alabama real estate market forecast for sellers
⏰ Homes are selling 26 days slower than the annual average	💰 Homes are selling for $21,560 more than the annual average
💸 Average listing commission: 2.72%	💸 Average buyer's commission: 2.72%

How to sell a home in Alabama

Cost to sell a home in Alabama

Buying a home in Alabama

How much home you can buy with $300,000 in...
🏠 Birmingham: 2,013 sq ft	🏡 Mobile: 2,290 sq ft
🏡 Huntsville: 1,852 sq ft	🏠 Montgomery: 2,400 sq ft

Investing in Alabama real estate

Best of Alabama

Each month, we compare locations in Alabama based on different criteria. This month, we're looking at levels of happiness and ranking the best counties in the state.

Happiest Counties in Alabama
1. Shelby County
2. Madison County
3. Baldwin County
4. Morgan County
5. Limestone County

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Worst of Alabama

Each month, we compare locations in Alabama based on a different criteria. This month we're looking at levels of happiness data. These are the counties that ranked the worst in the state.

Least Happy Counties in Alabama
1. Greene County
2. Perry County
3. Wilcox County
4. Lowndes County
5. Sumter County

Alabama resources

Frequently asked questions about Alabama real estate

It is currently a seller’s market in Alabama. The demand for homes in the state is high, driving prices up and forcing buyers to make quick offers on properties on the market. Although that’s the general situation across the state, it’s still best to consult with a local real estate agent to figure out the specific trends in your particular city.

Real estate is always a good investment, especially in bigger cities in Alabama, like Huntsville and Birmingham, where people are always looking for housing. However, to really maximize your investment, you have to also know where the best neighborhoods to buy real estate are and how to manage the properties after you buy. To find out more, check out our guide on real estate investing.

No, it currently is not an ideal time to buy a house in Alabama. Not only are real estate prices above average in the state, but mortgage rates are also rising. If you plan on buying a house in the state, then you will need the help of a top real estate agent to navigate the market and get you a good deal.

Methodology

Clever's analysis of state market trends is based on local data from Zillow, realtor.com, Redfin, Bankrate, the U.S. Census, and Clever surveys. Our team of over 20 real estate analysts from across the country research local markets and data to compile our "Best" and "Worst" rankings.

Alabama Real Estate Market in 2023: Forecasts + Trends