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labama's housing market is gaining momentum as the Spring buying season heats up, with a 23.2% year-over-year surge in home sales and a 13.4% increase in median prices compared to March of last year. According to the Alabama Economic and Real Estate Report, released by the Alabama Association of REALTORS®, the state's 6,214 home sales in March marked a 5.6% month-over-month rise and a significant boost from February.

    The sold volume across the state reached $1.59 billion in March, a staggering 44.5% increase over last year and a substantial 10.4% jump from February. The average home sale price of $255,737 reflected a 17.1% increase over last year's figure. Meanwhile, the state's active listings at the end of March stood at 18,415, a 26.2% increase from one year ago, providing buyers with an ample selection.

    While economists predict continued growth in the near term, they also caution that consumer uncertainty may impact the market in coming months due to rising mortgage rates and declining consumer sentiment. However, Alabama's strong economy, which experienced the nation's fifth-highest GDP growth rate in Q4 2025, is expected to shield the state from national factors.

    A new feature in the report highlights the historical context of mortgage rates, showing that current rates are well within average ranges over the past 50 years. The tracker reveals a peak 30-year fixed rate of 18.63% in October 1981 and a low of 2.65% in January 2021. With homes remaining on the market for an average of 61 days, economists predict further decreases as the Spring buying season reaches its peak.