Montgomery, AL Housing Market Report

The Montgomery housing market as of December 2025 is transitioning into a more balanced environment, showing signs of stabilization after previous periods of volatility. With a median home value of $145,330 and a sale-to-list ratio of 0.98, sellers are still achieving near-asking prices, but the leverage is shifting. The most significant indicator of this shift is the rise in active inventory, which has grown by over 8% year-over-year to 1,422 listings. This increase in supply provides buyers with more options than they have seen in recent years, effectively cooling the frantic pace of the market.

Price trends over the last six months demonstrate a slow but consistent upward trajectory. Since July 2025, values have climbed steadily from $143,531 to the current $145,330. While the year-over-year appreciation is a modest 0.04%, the monthly incremental gains suggest a resilient floor for property values. Conversely, the rental market is experiencing much more aggressive growth, with median rents rising 4.21% to $1,301. This divergence suggests that while home purchase prices are flat, the demand for housing in the metro area remains robust, likely driven by Montgomery's stable employment sectors in government and military operations.

Looking ahead, the increase in days on market—now at 71 days compared to 50 a year ago—indicates that buyers are becoming more selective and taking their time with due diligence. Sellers should prepare for longer listing periods and may need to offer concessions to close deals. For buyers, the current climate offers a rare window of opportunity where inventory is up and price growth is tempered, though the rising cost of rent may make purchasing a home a more attractive long-term financial strategy. The market is expected to remain stable through early 2026, characterized by high inventory levels and steady, single-digit price appreciation.