Current Alabama Real Estate Income, Sales, and Trends

Alabama Realty Commission offers excellent opportunities for pursuing a career in real estate. With its growing population centers and affordable home prices, the state provides a robust market for agents to build their careers.

Alabama Real Estate Market

Data from the U.S. Census Bureau records the state’s homeownership rate by 70.2 percent, with 2,288,330 housing units in total.

For renters, monthly housing cost expenses including contract rent and utilities are estimated to have a median gross of $913.

Housing Cost in Alabama

Home prices in Alabama vary across the state but are generally considered more affordable than national averages. The median house cost according to the National Association of Realtors® (NAR) as of Q1 of 2023 is around $92,467 upwards of $360,511.

How Much Can a Real Estate Agent in Alabama Make?

The earning potential in real estate is a major appeal of the profession in Alabama. Broker and agent incomes are highly variable, but the lucrative potential exists for diligent professionals.

Here are some examples of average Alabama real estate agent salaries reported by recruiting sites:

• $48,500 average
• $59,000 average
• $43,042 – $56,488 range

According to the Bureau of Labor Statistics,¹ the average annual salary for a real estate agent in Alabama is $58,840 with top earners making upwards of $130,000 per year. High-producing agents at leading brokerages can earn $100,000 to $200,000+ in their first years.

Experienced brokers running their own firms can make $100,000 to $1 million+ after covering expenses.

Commissions comprise the majority of real estate agent earnings. This income ceiling is virtually unlimited for hard-working agents who build a large client base and transaction volume.

Real estate provides flexible earning possibilities for both part-time and full-time practitioners.

Agents who pursue high-value listings and deals or commercial real estate sales also earn higher incomes. Joining a top brokerage provides more lucrative lead and support resources as well.

Revenue potential grows significantly for brokers managing their own firms.

Real estate offers the freedom to determine your income ceiling through expertise, professional development, and service expansions. Agents can build a highly profitable book of business over time in Alabama’s vibrant housing market.

How Many Homes Were Sold in Birmingham, Alabama Last Year?

According to the Birmingham Association of Realtors®, there were 9,559 closed home sales in the Birmingham metro area in 2022. This represents a 2% decrease compared to the 9,749 home sales closed in 2021.

The median sales price in 2022 was $235,000, an increase of 5.4% over the previous year. Birmingham’s housing inventory grew in 2022 but still remained low at just 1.9 months of supply.

What Were the Top Counties for Residential Real Estate Sales in Alabama Last Year?

According to data from the Alabama Center for Real Estate, the top 5 counties for residential real estate sales in 2022 were:

1. Jefferson County (Birmingham metro): 9,559 home sales
2. Madison County (Huntsville metro): 5,688 home sales
3. Mobile County: 4,910 home sales
4. Montgomery County: 3,657 home sales
5. Shelby County (a suburb of Birmingham): 3,021 home sales

These 5 counties accounted for over 50% of the residential real estate sales transactions closed in 2022 throughout Alabama. Jefferson County led with the most sales activity centered around the state’s largest city of Birmingham.

Real Estate License Renewal and Reciprocity With Alabama

All active Alabama real estate licensees must complete continuing education (CE) to renew their licenses every 2 years from mid-June to October 1st.² Renewing on time keeps your license in good standing.

The CE requirements are:

• 15 hours total per renewal period
• Includes a 3-hour Risk Management course
• 12 hours of elective Commission-approved course
• Online or in-person delivery

Continuing education keeps you up to date on best practices, laws, and regulations. It shows ongoing enrichment that benefits clients.

Renew promptly by September 30th of each even-numbered year or your license will be placed on inactive status and penalties will apply when renewing. Agents can submit renewal applications up to 90 days late with a $100 penalty fee.

However, failing to renew by March 31 of the following odd-numbered year results in license expiration.

Reciprocity

The Alabama Realty Commission has reciprocal license agreements with every U.S. state allowing licensed out-of-state agents to transfer their license.

Applications from reciprocal states are expedited. Here are the steps for licensure through reciprocity:

1. Hold an active license from a reciprocal state.
2. Complete the 12-hour Reciprocal Real Estate Principles course.
3. Pass the state law portion of the licensing exam.
4. Submit a license history certification and an official “Certificate of Licensure” form³
5. File a completed AREC broker or salesperson application.

This streamlined process allows seasoned agents to quickly obtain an Alabama license without redoing pre-licensing. Be sure to verify that your home state has reciprocity with Alabama when exploring a move.

Becoming a licensed real estate professional in Alabama requires meeting key qualifications through education, testing, insurance, brokerage sponsorship, and application submission. Be sure to use AREC’s guidelines to successfully meet education, testing, and application requirements.