Alabama Q2 2025 Insights
The second quarter of 2025 was consistent with trends we’ve seen over the past several quarters, as interest rates and inventory have remained healthy comparatively. Per usual, there has been a slight slowdown in recreational and timberland activity during Q2 and Q3 due to seasonal activities and scheduling. Additionally, prices have stabilized after several years of sharp increases.
Recreational and Timberland Transactions
Recreational and timberland tracts continue to lead Alabama’s land market in terms of total acreage transacted this quarter. This is primarily due to the strong and consistent statewide demand for properties offering a mix of timber value, wildlife habitat, and recreational appeal.
Cropland and Pastureland
Cropland and pastureland sales followed closely behind, highlighting the sustained appeal of income-producing properties that also provide recreational and aesthetic value. Geographically, farmland market activity remains strongest in the Black Belt and Wiregrass regions, while smaller pasture tracts in Central and North Alabama continue to attract buyers looking for both working farms and weekend getaways.
Inventory and Time on Market
Typically, Alabama land properties that closed in Q2 averaged about five months from listing to sale. Higher-priced listings tended to stay on the market longer, while competitively priced tracts, particularly those under 500 acres, moved more quickly. These trends reflect a healthy, rotating inventory of productive and valuable land. Limited supply remains a key constraint; however, new listings generally keep pace with closed sales.
Looking Forward: What to Expect Through the End of 2025
Unless there’s a significant shift in market conditions, the Alabama land market is expected to remain steady, mirroring the trends observed throughout Q2 and year-to-date. If interest rates begin to decline, there may be a noticeable increase in buyer activity, particularly in the value range of $500,000 and below, with most transactions likely falling within the recreational and small-acreage categories.
Meanwhile, the timber and agricultural markets continue to face challenges, from mill closures to low commodity prices. As a result, land purchased strictly for timber investment has become rare. Instead, many buyers are acquiring timber tracts for recreational purposes, managing their timber primarily for wildlife habitat and outdoor enjoyment.
The outlook for agricultural row-crop land also remains uncertain. Many farmers are facing financial pressure, as input costs and commodity prices have stayed relatively fixed. In this environment, land value often becomes the only flexible variable. Even so, creativity and recreational demand have helped maintain interest in agricultural properties, especially those that combine open farmland with wooded areas, which appeal to a broad range of buyers.
In Summary
Market trends will continue to hinge largely on borrowing costs. However, while inventory remains low, new listings are arriving at a measured pace, and land values should hold strong. If rates rise again, there may be slower transaction volume, longer marketing times, and modest price adjustments. In that case, cash buyers could find themselves in a favorable negotiating position.
All transaction data presented in this report is derived from several sources, including public records and independent entities. Each transaction is individually verified by the Saunders Research team within Atlas, Saunders Real Estate’s market intelligence platform. These reports are not intended to represent a complete record of all market activity due to delays in publicly available records, but aim to provide the most reliable and transparent representation of the verifiable data available at the time of publication.