Alabama Economic and Real Estate Report For March Shows Impressive Home Sales Gains In Both Monthly and Yearly Comparisons
April 22, 2025
The Spring home-buying season is warming up as Alabama experienced impressive increases in both sales and median prices during March, according to the Alabama Economic and Real Estate Report released on Monday by the Alabama Association of REALTORS®, but economists noted that consumer uncertainty may affect the market in coming months.
Alabama’s 6,214 home sales in March represented an increase of 1,171 over February, a 5.6% rise month-over-month and an impressive 23.2% boost year-over-year. Likewise, the median home price in March rose by 9% compared to February and 13.4% when contrasted to the same period in 2024.
Alabama’s strong economy, which experienced the nation’s fifth highest growth rate in Gross Domestic Product during the fourth quarter of 2025 and eclipsed all sister southeastern states except Mississippi, will likely help shield the state from national factors.
The sold volume across the state was $1.59 billion in March, which was an enormous 44.5% increase over last year and a substantial 10.4% increase month-over-month. The economists predicted continuing increases in the near term based upon indicators.
A new feature in the report titled “Mortgage Rates Over The Decades” tracks their trends over the last 50 years ranging from the peak 30-year fixed rate of 18.63% in October of 1981 to the low of 2.65% in January of 2021. While recent media coverage of mortgage rates has compared them to the lows offered during the Great Recession of 2008 and the COVID-19 pandemic period, the tracker demonstrates that current rates are well within historical averages.
At an average of 61 days, homes in Alabama remained on the market for 18 fewer days in March compared to February, and the economists predict further decreases as the Spring home buying season goes into full bloom. The Alabama Economic and Real Estate Report is published monthly and annually by the Alabama Association of REALTORS®. Click here to view the full monthly and annual reports.