Tuscaloosa County Housing Market Report — October 2026

Last updated: October 2026 · By Byron Bennett, The Williams Group at Keller Williams Realty

October 2026 Edition  |  Reporting August 2026 Closings  |  The Williams Group at Keller Williams Realty

What Is Happening With Mortgage Rates?

Rates went up in September. On September 16, the Federal Reserve raised its key rate by a quarter point, to a range of 3.75% to 4%. It was the Fed’s first rate hike since 2023. The Fed said inflation is still too high.

Mortgage rates followed. Freddie Mac’s weekly survey showed the 30-year fixed rate at 7.03% on September 24. That was up from 6.76% two weeks earlier and 6.30% one year ago. Fannie Mae’s September forecast expects rates near 6.8% through the end of 2026 and about 6.7% in 2027. So the cheaper loan many buyers were waiting for is not on the way soon. That makes the price of the house matter even more.

In early August, a Northport couple called our team. They had outgrown their three-bedroom house and wanted to move up. A neighbor had sold a similar home in the spring for a strong price. So their plan was simple. They would list about $20,000 above that sale and leave room to negotiate. They figured buyers would pay it, because prices only seem to go up.

Hannah Gann sat down with them first. Hannah was born and raised in Northport and has helped buyers, sellers and investors here for years. She pulled August’s sales as they came in. Prices were holding, but they were not climbing. The county median was exactly where it was a year ago. Homes were also taking a week longer to sell, and there were 16% more of them on the market. Hannah showed the couple homes on their side of town that had been priced like their plan. Most of them were still sitting, and several had already cut their price.

So they changed the plan. They priced the house on what recent sales actually supported. They fixed the small things a buyer would notice, like paint touch-ups and a loose porch rail, and they used good photos. The house went under contract in its first week, close to the asking price. Then the extra inventory worked in their favor. On the buying side, they found a larger home that had been on the market for seven weeks. The seller agreed to help with closing costs. Our guide to buying and selling at the same time walks through how to time both sides. The lesson is simple. When prices are flat, your first price is your most important price.

How Did August Go in Tuscaloosa County?

Here are the numbers. They come straight from the West Alabama MLS. The table compares August 2026 to August 2025.

Source: West Alabama MLS (InfoSparks), all residential property types, Tuscaloosa County, pulled October 1, 2026. Closed-month data can shift slightly as late entries post.

Here is what the table means. Values held. The typical home sold for the same price as last August, and for about $11,000 more than in July. But the market moved slower. The typical home took 30 days to sell, up from 22 days in July. Buyers had 805 homes to pick from. That is about 3.5 months of supply, up from 3.0 a year ago. Many people call a market with 5 to 6 months of supply balanced, so this is still a fairly tight market. It is just less tight than last year.

What Changed From July to August?

What Does This Mean for Sellers?

Your home likely kept its value. The typical August sale matched last year’s price. But your home is not likely worth more than it was in the spring just because time has passed. And with 16% more homes for sale, buyers are comparing yours to more choices. The homes that sell fast are priced on recent sales and ready to show. The homes priced on hope sit, then cut. Every area is different, from Northport to Tuscaloosa and the lake. Our selling resources cover what preparation actually pays off. If you are 55 or older and still deciding whether to move at all, the free Next Chapter Housing Assessment is a no-pressure, 10-minute way to think it through.

What Does This Mean for Buyers?

You have time and choices. There were 805 homes for sale, and the typical one took 30 days to sell. Homes that have sat past a month are where you can ask for a lower price or help with closing costs. Fresh, well-priced homes still sell fast, so be ready to move on those. On rates, the honest truth is that they went up, not down. A 7% rate makes every dollar of price matter more. Negotiate the house in front of you instead of waiting for a cheaper loan. If rates fall later, you can refinance. If you are curious what your budget buys by area, see what $300,000 or $400,000 buys in Tuscaloosa County. First-time buyers can start with our first-time home buyer guide and financing resources.

What Are We Watching Next Month?

We are watching two things. First, how buyers react to 7% rates. Early September numbers show fewer homes going under contract than last September, but those counts are not final yet. September’s full numbers will tell us more. Second, days on market. If the typical home keeps taking 30 days or longer, pricing right on day one will matter even more this fall. We are not in the prediction business. We are in the reporting business. You can read last month’s report or browse all of our housing market reports anytime.

Tuscaloosa County Housing Market FAQ

The Williams Group at Keller Williams Realty reports on the Tuscaloosa County housing market every month. The client story in this report is shared to show how the numbers play out in real decisions.

Sources: West Alabama MLS (InfoSparks), Tuscaloosa County residential data for August 2026 and August 2025, pulled October 1, 2026. Freddie Mac Primary Mortgage Market Survey, September 24, 2026. Federal Reserve implementation note, September 16, 2026. Fannie Mae September 2026 housing forecast.