Alabama Real Estate Market Trends & Analysis

The Alabama real estate market may be summed up in two words: relatively affordable. Despite median home values increasing for the better part of a decade, low interest rates and improvements to the state’s median family income have made it easier for more people to actively participate in the housing market. Additionally, unemployment has dropped since last year, and confidence is starting to return to the market in the wake of the pandemic.

However, it is worth noting that while more people are looking to participate in the market, insufficient inventory levels have kept many prospective buyers on the sidelines. Today's lack of listings, in addition to lower interest rates and more savings in bank accounts, has simultaneously increased competition and respective home values. In response, local real estate investors have started looking away from shrinking profit margins on rehabs and towards long-term exit strategies like rental properties.

Alabama Real Estate Fees & Regulations

Real Estate

Closing Conducted by: Attorneys, Title Companies
Conveyance: Warranty Deed

Foreclosure Procedure

Primary Foreclosure Method: Non-Judicial
Process Period: 1 - 3 months
Notice of Sale: Trustee
Redemption Period: Up to 12 Months


Income Tax: 2.0% - 5.0%
Corporate Tax: 6.50%
Sales Tax: 4.00%
Estate Tax: No
Inheritance Tax: No
Median Property Tax: 0.33%
Property Taxes by County:

Average Transactional Costs

Closing Cost: $2,613
Transfer Fee: Deeds 0.1%; Mortgages 0.15%
Origination Fee: $1,967