Stock photo.
With housing sales on the rise, buyers and sellers are showing more confidence in Homewood real estate to start the year. The market has continued to show strong momentum and buyer demand, said Dina Hendrix, Realtor at ARC Realty.
“According to local MLS data, the median sales price is up 6% year over year, and the number of homes sold in Homewood increased by 8% since last spring,” Hendrix said. “Despite this growth, inventory still remains relatively low, making it an especially strong time for sellers to list their homes.”
The state also saw a 4% increase in home sales in 2025, with the median sales price increasing 10% to about $234,000, according to the Annual Alabama Economic and Real Estate Report released by the Alabama Association of Realtors.
After having limited inventory for a long time and with interest rates starting to decrease, the real estate market in Homewood is expecting a solid year, said Liza Roitman, Realtor at The Fred Smith Group at RealtySouth. There have already been off-market sales and bidding wars happening the first day a house goes on the market.
“I think with rates starting to go down, those that have been hesitant to sell because they are sitting at 3% are starting to get cramped by their current situation and also feel like they will have more buyers for their house now that rates have started to ease a bit,” Roitman said. “We are hoping it encourages more people to sell and more new buyers to enter the market.”
Homes that are priced right and show well are moving fast, said Marshall Malone, Realtor at ARC Realty.
“The ones that test the market get tested by it,” Malone said. “Launch strong, or plan to adjust. Price just under the average market comp. That will attract more buyers and possibly more offers, which drive the price upward.”
Buyer interest and activity are increasing, which Hendrix said is a normal pattern during this time of the year. However, Homewood still needs more sellers to help balance the market and give buyers more options, she said.
Mortgage rates are also influencing behaviors on both sides of the market right now, Hendrix said. Buyers who previously paused their searches are now starting to reenter the market, which is contributing to renewed activity and increased competition.
“On the seller side, this shift is creating more confidence,” Hendrix said. “Homeowners who were hesitant to list, often due to concerns about affordability on their next purchase, are starting to feel more comfortable making a move as borrowing costs trend downward.”
When heading into the market, Hendrix encourages buyers to be prepared by having a mortgage pre-approval in place, acting early, preparing for the possibility of multiple offers and building a relationship with a trusted local Realtor.
For homeowners looking to sell, Hendrix encourages them not to wait. “Inventory remains limited, and with mortgage interest rates easing, motivated spring buyers are returning to the market,” she said.
Whether looking to buy or sell a home in Homewood, it’s important to partner with a Realtor who is connected to the community.
“Local agents generally have the best info and know the most people to get the word out on your house,” Roitman said.
