The median home price in Montgomery, AL for 2026 is projected to range between approximately $174,700 and $205,000, with variations depending on the data source. According to Redfin, the median price as of May 2026 is about $205,000, reflecting a 2.4% increase compared to the same period last year, while Houzeo reports a slight decrease to $174,700, down 0.09% year-over-year. These figures indicate differences based on measurement methods and timing, but overall, the upward pressure on prices remains limited, and the market is gradually moving towards balance.

In terms of inventory, the Montgomery market is experiencing a gradual increase in supply in 2026. The average inventory level is around 6.4 months, which is close to a buyer's market based on the typical 6-month benchmark. In the first quarter of 2026, Alabama's overall inventory increased by about 12% compared to the previous quarter, corresponding to approximately 2.8 months of supply, and the Montgomery metropolitan area is following a similar trend.

The duration that listings remain on the market is also increasing. The average days on market is 87 days, significantly up from 51 days last year, and the sale-to-list price ratio is around 95.41%. Only 12.32% of homes sold for more than the asking price, while 33.94% of listings had price reductions. These figures indicate that the current market favors buyers in terms of negotiation power.

Key indicators are summarized as follows:

• Median sale price (Redfin, as of May 2026): approximately $205,000 (up 2.4% year-over-year)
• Median sale price (Houzeo, for 2026): approximately $174,700 (down 0.09% year-over-year)
• Average days on market: 87 days (up from 51 days last year)
• Inventory supply months: approximately 6.4 months
• Sale-to-list price ratio: 95.41%
• Percentage of sales above asking price: 12.32%
• Percentage of price-reduced listings: 33.94%

Looking ahead at the Montgomery housing market, prices are expected to see a modest increase of 2-4% in the second half of 2026. With a decrease in mortgage rates and an increase in inventory, a stable market without overheating is likely to be maintained. The data suggests a gradual improvement in conditions favorable to buyers rather than a sharp decline in prices. For serious buyers, it may be worthwhile to take full advantage of the current negotiation conditions.

(Sources: Redfin, Houzeo, Movoto, Alabama Real Estate Loans Q1 2026 Report, 2026 data / This article does not constitute investment or legal advice, and it is recommended to consult a professional before making any actual contracts.)