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Alabama Real Estate Shows Early Signs of a More Balanced Market

Posted on March 26, 2025
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a more balanced market

Early data shows signs that the Alabama real estate market is beginning to shift slightly in some areas. Buyers and investors should pay close attention to the unfolding trends as a more balanced market emerges.

With increasing inventory, decreasing sales prices and signs of improving mortgage rates, the scales may be tilting toward a market more favorable to buyers. Let’s delve into what these early indicators mean for potential homebuyers and sellers in Alabama.

What is a buyer’s market?

To summarize, certain conditions are present to create a more favorable buyer’s market, including increased inventory, decreased demand and lower sales prices. These indicators haven’t appeared in Alabama’s market on average in quite some time. 

However, early residential reports from across the state in 2025 support an emerging trend, giving buyers a slight advantage. More specifically, according to reports, data shared by the Alabama Association of REALTORS® suggests a “more balanced” market is taking shape with more inventory, less competition and a recent boost in home sales.

What’s happening in Lee County?

Based on Lee County’s residential reports for January and February, the local market is on trend with the statewide data. In general, inventory in our area is up, the average sale prices are dropping, homes are spending more time on the market and more properties are selling.

For instance, within the first two months of 2025, year-over-year trends showed a 14.6% increase in properties listed in Lee County in January and a 9.9% increase in February.  Month-to-month was relatively steady, going from 611 properties listed in January to 609 in February. 

Additionally, average prices are stabilizing slightly after experiencing consistent increases previously. In Auburn, for example, a slight dip in the average sales prices is present month-to-month and year-over-year. 

Month-to-month, the average sales price decreased by 13.3% from $530,078 in January to $459,393 in February. The average sales price for a home in Auburn decreased 15.9% year-over-year in February. 

Additional indicators of a shift

In addition to more inventory and lower prices, homes spent more time on the market in Lee County, Auburn and Opelika this year. Let’s look at Opelika specifically. In February 2025, homes spent an average of 79 days on the market, a 19.7% increase from the year before. 

But that extra time on the market doesn’t mean the market isn’t moving. Recent statistics show a continued boost in properties sold in our area. Auburn alone rose 52.3% year-over-year in January and 45.1% year-over-year in February!

Summary

The takeaway? Buyers may enjoy more negotiating power, more options, more time to look and lower prices and mortgage rates this spring. For the most recent reports and recaps, continue reading our blogs. Contact Ryan Roberts to discuss current market conditions leaning toward a more balanced market, local listings and available opportunities in East Alabama!