Published October 11, 2026 in Market Update

Foley is moving while new supply stays tight

By Chris McClure

Real estate, Primary market

This is not a wait-it-out market. It is a positioning market. Buyers are still writing offers in Foley. The question is whether your price puts you in front of them, or behind the homes that are sitting.

Are you priced where the contracts are being written, or where homes are going quiet? That is not a personality test.

It is a risk problem. Foley's 36535 ZIP code, which covers much of South Foley and the growth corridor near Gulf Shores, tells the story clearly for the three months ending August 31, 2026.

The number that changes what you should do

The Real Estate Data Aggregator counted 411 pending sales in ZIP 36535 for the three months ending August 31, 2026. That is up 25.7% from the same period in 2025. Demand did not disappear. It shifted to homes that are priced to compete.

The Real Estate Data Aggregator counted 354 homes for sale in 36535, down 18.6% from a year earlier. New listings fell 19.2% over the same stretch. Fewer homes are coming to market. The ones that are priced right are getting picked up.

Rates are the weight every buyer is carrying

Freddie Mac put the average 30-year fixed rate at 7.40% as of October 8, 2026. Freddie Mac also reported the 15-year fixed at 6.73%. That is real weight on a buyer's monthly number, and it means overpriced homes stall faster than they did two years ago. It also means a well-priced home still moves, because buyers who are ready to act are not waiting for rates to fall.

The National Association of Realtors reported that the national months' supply of homes for sale reached 4.9 months, the highest level in over ten years. Foley's 36535 sits at 3.3 months. That gap matters. Less supply here means less competition among sellers, but only if the price is structured around what buyers can actually close.

Foley is not one market

South Foley and the area near the Beach Expressway read differently from Central or North Foley. They read differently from Elberta and Lillian too. The numbers below show that clearly.

ZIP 36502, which covers older and more established parts of West Foley, had the Real Estate Data Aggregator count 41 pending sales, up 41.4% from a year ago. Only 28 homes were for sale there, down 36.4% year over year. Median days on market was 35 days. That is the tightest supply picture in the Foley market.

ZIP 36507, covering Central and North Foley, showed 61 pending sales, up 8.9%. The Real Estate Data Aggregator counted 53 median days on market there, 14 days longer than a year ago. More supply came to market in prior periods, and buyers are taking a little more time.

New construction is part of the math

In South and East Foley, new construction competes directly with resales. Builders like D.R. Horton can offer closing cost help and rate buydowns. A resale priced against the builder's asking price is not priced against the builder's full financing package. That is the comparison a buyer's agent will make at the table.

The Real Estate Data Aggregator counted 328 homes sold in 36535 in the three months ending August 31, 2026, up 11.9% from a year ago. Sales are happening. The homes that closed did so at a median of 97.9% of list price. That means sellers gave up about 2 cents on the dollar on average. Price it right and the gap is small.

What the sale-to-list number tells you

South Foley's 97.9% sale-to-list ratio is unchanged from a year ago, according to the Real Estate Data Aggregator. That is a stable read. Sellers who priced to the market closed near their number. The ones who did not are in the 80-day median, or longer.

One street reads differently from the whole ZIP code

These numbers cover whole ZIP codes. A street in GlenLakes reads differently from one near the OWA area. A home with acreage in East or West Foley reads differently from a new-construction subdivision off the Beach Expressway. The ZIP code average does not set your price. Your specific home does.