Market Update- May 2025

by Maria Oliver

Mobile, AL Real Estate Market Update – May 2025

As we head into the summer months, Mobile’s real estate market is starting to shift gears. After several years of strong activity and rising prices, we’re now seeing signs of moderation—something that may bring both challenges and opportunities, depending on which side of the transaction you’re on. Whether you're looking to buy, sell, or just keeping tabs on the local scene, here’s what’s unfolding in Mobile and how national trends are shaping things locally.

🌿 What’s Happening in Mobile?

According to the Mobile Area Association of REALTORS® and the Alabama Center for Real Estate, home sales slowed in April, with 364 properties closing—a nearly 16% drop compared to this time last year. While that might sound alarming, it's not necessarily a red flag. Fewer transactions can simply reflect changing buyer behavior, especially in the face of rising interest rates and cautious consumer sentiment.

What stands out even more is the sharp drop in new construction sales, which made up just over 9% of all closings last month. That’s a significant 33% decline year-over-year, pointing to some hesitancy in the new build market, perhaps driven by cost, timing, or financing challenges.

Meanwhile, inventory is quietly building. More homes on the market, particularly among new developments, are giving buyers more to choose from—and softening the competitive edge sellers once had.

💰 Where Are Prices Going?

The median home price in Mobile slid to $313,580 in April, a slight 1.5% dip compared to last year, and down about 4% from March. This isn’t a crash—it’s a cooling-off. After rapid price growth in recent years, a little stability can be a healthy thing.

This modest decline suggests the market is beginning to balance out. Sellers may need to recalibrate their expectations, but buyers—especially those who’ve been sidelined by bidding wars—might see this as a window of opportunity.

🌎 How National Trends Are Playing a Role

Zooming out, the National Association of REALTORS® reports that existing-home sales across the country dipped to an annual rate of 4 million units in April—the slowest April since 2009. Inventory rose to 1.45 million homes, up 21% from last year, which is starting to give buyers more breathing room.

Home prices nationwide are still climbing, with the median U.S. price now at $414,000, but the pace of growth has slowed. And with mortgage rates hovering around 6.8% to 6.9%, affordability remains a major hurdle for many.

As NAR Chief Economist Lawrence Yun put it, “Inventory is up, giving buyers more choices—but affordability is still a concern with mortgage rates staying high.”

🧐 What This Means for You

If you’re a buyer in the Mobile area, this could be your moment to act. Homes are staying on the market longer, there’s more to choose from, and sellers may be more flexible than they were a year ago. Still, with rates remaining high, it’s smart to get pre-approved and know your numbers before diving in.

If you’re a seller, the market is still active—but you’ll need to be strategic. Pricing competitively, making key updates, and working with a local expert can help you stand out in a shifting market.

🔮 Looking Ahead: What Summer 2025 May Bring

Forecasts from both NAR and Alabama’s Center for Real Estate suggest we’ll see modest growth of around 2% in home values by fall. Sales volumes are expected to remain lower than in 2023, but that doesn’t mean the sky is falling. Instead, we’re seeing a market that’s adjusting, not crashing.

Mobile remains an affordable, appealing place to live—especially for those who value space, lifestyle, and long-term investment potential. And for those who are patient and intentional, this season could offer a sweet spot for making a move.