Alabama (AL) housing market
Cool MarketStatewide monthly sale-market indicators for rental investors — not a substitute for local rent comps, taxes, or insurance, but a fast read on price level, pace, and negotiation pressure.
Data period: May 2026
Market snapshot
- Median sale price
- $313K
- Median days on market
- 57 days
- Months of supply
- 4.0
- Active inventory
- 23,133
- Homes sold
- 5,805
- Sale-to-list ratio
- 97.9%
- Listings with price drop
- 24.7%
- Data month
- May 2026
Pair this view with the rental property calculator, DSCR calculator, and cap rate calculator — or browse all calculators.
Rental Investor Snapshot
Labels below come from monthly sale-market indicators only. True cash flow requires local rent, taxes, insurance, vacancy, and expense assumptions — model those in the rental calculator, then sanity-check against sale-speed signals here.
- Market temperature
- Balanced
- Buyer leverage
- Medium
- Pricing signal vs. U.S. median
- Easier buy-in vs. U.S. median (price only)
- Investor fit (heuristic)
- Buy-in vs. U.S. · Negotiation
Watch-outs
- Slower sales (longer days on market) can mean more time to diligence — but also weaker demand.
- Elevated price cuts can signal negotiation room — verify condition, rents, and comps street-by-street.
Suggested next step: Run a rental property analysis with your own rent, financing, vacancy, and expense assumptions — then sanity-check against this market's sale-speed and negotiation signals.
Cool Market
Buyer activity is slowing, creating more negotiating room.
Alabama market summary
The Alabama housing market is cooling down. As of May 2026, the median home sale price is $313K, up 7.1% year-over-year. Homes are spending a median of 57 days on the market, 1.8% longer than a year ago.
There are 23,133 homes for sale — 0.8% more than last year. With 4.0 months of supply, this is a balanced market. 7,527 new listings were added during this period, down 1.0% year-over-year.
Homes are selling for 97.9% of their list price on average, suggesting room for negotiation. 18.1% of homes sell above their asking price. 24.7% of listings have had a price drop.
Market Opportunity Score
Based on current market conditions
68
Contributing Factors
How This Market Compares
vs. National Median
Investor takeaway
The cooling market may present buying opportunities with less competition and more negotiating leverage. A significant share of sellers are cutting prices, which can signal motivated sellers and potential deals. Prices are 31% below the national median on this sale snapshot — that can mean lower buy-in, but cash flow still depends on local rent, financing, and expenses.
Alabama market trends
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Detailed market metrics
Median list price
$326K
Price per sq ft
$163
Sale-to-list ratio
97.9%
Months of supply
4.0
Sold above list
18.1%
Price drops
24.7%
New listings
7,527
↓ 1.0% YoY
Pending sales
7,056
Alabama housing market FAQs
What is the median home price in Alabama?
For the latest published month, the median sale price in Alabama is $313K. Median means half of homes sold above that price and half below — it is a useful benchmark, not a rule for every listing.
Is Alabama a buyer's or seller's market?
With about 4.0 months of supply, the market is often closer to balanced — neither extreme scarcity nor extreme surplus.
How long do homes stay on the market in Alabama?
For the latest published month, the median days on market in Alabama is 57 days — half of homes went pending faster and half slower.
Is Alabama good for rental property investors?
Sale-market stats show how competitive buying is (speed, negotiation, inventory). They do not prove rent performance. Alabama can still work for rentals if the numbers work on a deal-by-deal basis — use local rent comps, financing, vacancy, and expenses in the rental property calculator.
How should investors analyze a rental property in Alabama?
Start with purchase price, financing, rent, vacancy, operating expenses, and capital repairs. Stress-test rates and rent. Will It Flow’s rental property calculator is built to translate those inputs into cash flow, DSCR, cap rate, and cash-on-cash return for Alabama deals.
Metro markets in Alabama
Open a metro for the same investor snapshot and trends, then run a shortlist through the DSCR calculator and cap rate calculator.
Birmingham, AL
$331K median · 52 days on market
Huntsville, AL
$340K median · 61 days on market
Daphne, AL
$398K median · 64 days on market
Montgomery, AL
$285K median · 63 days on market
Mobile, AL
$245K median · 35 days on market
Tuscaloosa, AL
$285K median · 41 days on market
Auburn, AL
$390K median · 38 days on market
Florence, AL
$258K median · 34 days on market
Decatur, AL
$242K median · 60 days on market
Dothan, AL
$245K median · 78 days on market
Cullman, AL
$250K median · 65 days on market
Albertville, AL
$280K median · 71 days on market
Anniston, AL
$183K median · 66 days on market
Enterprise, AL
$255K median · 63 days on market
Gadsden, AL
$265K median · 60 days on market
Fort Payne, AL
$229K median · 75 days on market
Alexander City, AL
$457K median · 89 days on market
Talladega, AL
$238K median · 91 days on market
Ozark, AL
$160K median · 59 days on market
Jasper, AL
$233K median · 55 days on market
Scottsboro, AL
$239K median · 66 days on market
Atmore, AL
$143K median · 74 days on market
Selma, AL
$118K median · 71 days on market
Eufaula, AL
$503K median · 284 days on market
Troy, AL
$278K median · 56 days on market
More Alabama housing market data
Compare how Alabama fits nationally on the U.S. housing market overview, or browse the top 100 U.S. metro housing markets by sales activity.
New to underwriting? Read how much cash it takes to buy a rental in 2026 — then stress-test assumptions in the calculators above.
Underwrite a Alabama rental with real numbers
Cash flow, Cap Rate, DSCR, and cash-on-cash return — built for speed without skipping rigor.
Housing market data provided by Redfin, a national real estate brokerage. Not financial advice. Always consult a qualified professional before making investment decisions.