Alabama’s 6,292 home sales in September represented a 3.9% increase over the same period in 2025 but a 5.8% decrease from August’s reported figures, which remains consistent with both historical and seasonal sales patterns.

The $275,333 median home price in September fell by a slight 0.9% compared to August, but rose by $40,087, or 14.6%, over last year’s monthly number. The economist predicts that October’s media price will likely remain unchanged based upon recurrent patterns and economic signals.

The sold dollar volume in September, representing the combined sales price of all homes closed during the month, was $2.07 billion, a substantial 21.8%, or $370 million, increase over the same period last year but a 5.5% reduction when compared to August’s $2.19 billion.

The 22,252 active listings at the end of September were at their highest level since November of 2018 and increased by 8.5% compared to the 20,765 of one year ago. The 71-day average that homes remained on the market in September was three days longer than August as well as three days longer than the same period in 2025.

The increase in active listings resulted in housing supply rising to 4.8 months in September compared to August’s 4.6 months, and the economists predict it could rise to 5.0 months of supply by the next report. The housing supply, which estimates the number of months it would take for all homes currently on the market to sell, was slightly higher than the 4.7 months of supply one year ago, in September of 2025.

New home building permits in August, the latest figures that are available, totaled 1,392, an 11.3% increase over August of 2025 and a 2.5% increase over the month prior.

The average 30-year mortgage rate of 7.28% recorded at the time the latest Alabama Association of REALTORS® Economic and Real Estate Report was drafted is 98 basis points higher than the 6.30% logged in October of 2025, but it remains below the 50-year average rate of 7.67%.

According to the latest figures, Alabama’s unemployment rate in August was 3.4%, which remained unchanged from the same figure recorded in July, and it was well below the national rate of 4.1%. The Leisure and Hospitality industry led growth with 3,600 new jobs in August followed by Professional & Business Services with 1,700 jobs and Manufacturing with 1,300 jobs.

Alabama’s labor force participation rate fell slightly in August to 56.8%, which is the fifth straight month of decline and marks the lowest percentage since the state recorded the same figure in February of 2023. The U.S. participation rate in June was 61.6%.

Moore said the overall picture indicates that Alabama’s home sales and real estate industry continue to buck national economic trends and obstacles, but rising interest rates, continuing inflation, and consumer concerns about affordability offer challenges going forward.

Despite the economic conditions, Moore suggested that the fourth quarter of 2026 is a prime time for motivated buyers to purchase a new home.

“While rates are likely to remain elevated, and there is pessimism nationally, the fourth quarter is a good time to buy a home in Alabama,” Moore said. “Median prices are likely to decline as sellers adjust to market realities, active listings are near multi-year highs, and homes are spending more time on the market, creating a more favorable environment for prospective buyers.”