Mobile, AL Housing Market Report

The Mobile, Alabama real estate market is currently transitioning into a more balanced environment, though it increasingly leans in favor of buyers as we conclude 2025. With a median home value of $191,493, the market has seen a modest year-over-year decline of 2.1%. This cooling trend is further evidenced by a six-month consecutive slide in home prices, dropping from a July peak of $194,095. While active inventory has grown slightly by 1.39% to 1,610 units, the sale-to-list ratio remains high at 0.99, suggesting that while prices are softening, sellers are still receiving offers very close to their asking prices.

Several factors are driving these price trends, primarily a correction following the rapid appreciation seen in previous years and a shift in demand toward the rental sector. While home values have dipped, the rental market in Mobile is surging, with median rents rising 4.88% year-over-year to $1,221. This divergence suggests that high interest rates or economic caution may be pushing potential homeowners into the rental market, thereby reducing the upward pressure on purchase prices. Despite the price dip, homes are moving slightly faster than last year, with an average of 76 days on market, indicating that well-priced properties still attract steady interest.

Looking ahead, the Mobile market offers a unique window of opportunity for first-time buyers and investors. For buyers, the combination of declining home values and a nearly 1:1 sale-to-list ratio provides a chance to negotiate without the intense bidding wars of the past. For sellers, the priority must be realistic pricing; the steady six-month decline in values means that overpricing a home could lead to it stagnating on the market. Investors should take note of the robust rental growth, as the widening gap between home ownership costs and rental income improves potential yields in the Port City metro area.