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        <title>Huntsville, Al Real Estate Blog</title>
        <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/2024-04/</link>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-april-26th--homes-for-sale-in-huntsville-al-area.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-april-26th--homes-for-sale-in-huntsville-al-area.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Sneak Peek Listings for April 26th | Homes For Sale in Huntsville, AL Area</title>
    <description> <![CDATA[ 
Sneak Peek Listings for April 26th





229 Mainsail - $385,460


229 Mainsail Way, Madison, Alabama 35758


2,185 sqft


Talk to an MC Agent today for more info or call 256-270-9393








 



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    <pubDate>Fri, 26 Apr 2024 14:37:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/huntsville-alabama-housing-market-report--march-2024.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/huntsville-alabama-housing-market-report--march-2024.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Huntsville, Alabama Housing Market Report | March 2024</title>
    <description> <![CDATA[ 
Huntsville, Alabama Housing Market Report | March 2024





 


The housing market numbers  for Huntsville, Athens, and Morgan County in March 2024 showed a significant surge in inventory across North Alabama. With increases of up to 50 in some areas, sellers are navigating a shifting landscape as more homes enter the market. Despite a decrease in closed sales, pending sales show promise for the year ahead. While the market remains favorable for sellers, rising home values present challenges for buyers. Whether you're an experienced investor or a potential homeowner, this comprehensive analysis provides invaluable insights into crucial trends affecting affordability, and housing supply to keep you the most informed whether you're buying or selling a home in Huntsville, Alabama.


Huntsville, Alabama Market Overview


For buyers in the Huntsville, Athens, and Decatur markets, there's a mix of news. Let's start with Huntsville. The good news is that there's more supply across all submarkets, especially in Huntsville, where there's been a 30.2 increase. Housing supply now matches 2019 levels across North Alabama. While demand still outstrips supply, we're in a healthier position compared to the post-pandemic period, which bodes well for homebuyers.


On the flip side, the average sales price continues to climb, favoring sellers but making it tougher for buyers. The average sales price has risen by $6,000, from $368,000 to $374,000 compared to this time last year. This increase persists despite fewer homes sold in the Huntsville Metro area, with 536 homes sold this March compared to 651 last March, marking a 17.7 decrease. This decline is significant, especially considering that 2023 saw some of the lowest sales volume numbers across the US. Unfortunately, 2024 has started off even worse for Q1 than the previous year.


Athens, Alabama Market Overview


Athens remains a bright spot in the North Alabama market. The average sales price has soared by $16,000 year over year, from $343,000 to $359,000, putting it in close competition with the Huntsville market in terms of average sales price.


Supply in Athens continues to grow due to the market's attractiveness, boasting high-quality schools, a strong job market, and proximity to Huntsville and other employment opportunities. The market has seen a 50.1 increase in homes on the market, largely due to significant new construction in the Limestone County-Athens area. Despite a slight dip in the number of homes sold, with 176 sold this March compared to 184 last year, marking a 4.3 decrease, Athens fared better than Huntsville in terms of overall market performance.


Morgan County Market Overview


Buyers in Morgan County have some good news. The average sales price remained flat year over year at $265,000, failing to keep pace with inflation. However, sales were down, with 114 homes sold versus 127, indicating a 10.2 decrease, which aligns with market trends. Although Morgan County experienced a decline in the number of homes sold, there was a significant 48.3 increase in homes on the market.


It will be interesting to observe how this influx of supply affects prices moving forward into the spring and summer months, especially as prices have remained stagnant over the first quarter. With more homes entering the market and current demand levels, it's likely that Morgan County's price appreciation will remain subdued throughout 2024.


New Listings, Pending Sales, &amp; Closed Sales


A significant advantage for buyers is the increase in new listings hitting the marketplace. That's up 5.8 year over year, from 1,318 listings this time last year to 1,394 in 2024. This surge suggests that despite the mortgage rate lockdown effect, more people are choosing to sell their homes and move forward with their lives. Life doesn't wait for interest rates to fluctuate; whether it's the need for diapers, graduation ceremonies, or new job opportunities, people are opting to list their homes now rather than wait for interest rates to drop.


Pending sales are also on the rise, marking a 10.6 increase. This is encouraging news for the overall market and for sellers currently listing their homes. In March 2024, there were 1,265 pending sales compared to 1,144 last March.


However, the number of closed sales has declined by 11.3. This year saw 949 closed sales compared to 1,070 last March. This downward trend has persisted throughout the entire first quarter of 2024, with a decrease of just over 1. While 2023 was a sluggish year for sales nationwide, 2024 seems to be following suit, though the increase in pending sales by 10.6 offers some optimism. The second quarter will reveal how the market for home sales in the Huntsville area unfolds.


Days on Market, Average Sales Price, &amp; Percent of List Price Received


Days on the market increased from 41 to 48, which is still a positive trend. We're still firmly in a seller's market in terms of days on the market and the available supply. The average sale price rose by 2.4 overall, from $332,362 to $340,346, and this increase will impact affordability as well.


With more supply entering the market, the percent of list price received has slightly decreased from 98.4 to 98.2 year over year. We're still above 97, which indicates a balanced market. Typically, a 3 negotiation room is considered balanced between sellers and buyers. Currently, it's still leaning towards the seller's side. Although supply has increased from 2.5 months to 3.1 months, we're still below the four-month mark. The ideal range is typically 4 to 6 months for a balanced market. There are still not enough sellers entering the marketplace to achieve that balance.


Housing Affordability, Housing Supply, &amp; Housing Inventory


Housing affordability has decreased year over year from the ideal score of 100 to 95. This decline means that the median-priced home is no longer affordable for the median household income in our area, dropping slightly from 100 to 95. The downside is that housing is less affordable in our area. However, the upside is that our housing remains much more affordable in the Huntsville area compared to many other parts or similar cities across the US, where housing affordability numbers are significantly below 100. With this number hovering close to 100 and potential interest rates possibly decreasing in 2024, we'll have to wait and see. If interest rates do decrease slightly, we might reach that score of 100 once again.


The good news for buyers is that the months worth of supply has increased from 2.5 months last year to 3.1 months in 2024. However, we're still below the desired range of 4 to 6 months, which is considered a balanced market. Therefore, we technically remain in a seller's market, reflected in listing to sales ratios ranging above 97, with the current rate at 98.2. More supply is simply needed to meet demand.


The positive development is that inventory is gradually increasing in that direction. Inventory has risen by 18.5 across the overall North Alabama area, from 2,601 homes last year to 3,082 homes this year, bringing us back to pre-pandemic levels of 2019. This is a step in the right direction. However, the challenge remains that 2019 was still not ideal due to the aftermath of the Great Recession and the resulting slowdown in home building, despite the increase in family formations in our area and across the US.


March 2024 Housing Market Takeaways


With an 18.5 increase in inventory across all the main markets in North Alabama, Huntsville is up by 30.2, while the Athens and Morgan County areas are both up by around 50. This marks a significant step in the right direction, as many people are now choosing not to let interest rates dictate their lives. Instead, they are moving forward with selling their homes and transitioning to their next residence.


Closed sales have declined by 11.3 in March, although pending sales are up year to date. For Q1, there is a 1.2 decrease year to date. Thus, 2024 seems to be starting off as a slower year compared to 2023. However, despite the hope of interest rates dropping and sales prices decreasing, home values continue to rise. Waiting for interest rates to decrease is proving to be a costly strategy for homebuyers, leading many to enter the market without much concern for interest rates and focus on finding the right home to move forward with their lives.


Even though inventory has returned to pre-pandemic levels of 2019, it remains only half of what was seen in 2015. Buyers are benefiting from having more options to choose from, but we are still technically in a seller's market. This presents a favorable opportunity for sellers to achieve their desired selling prices in this market.


 



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    <pubDate>Fri, 19 Apr 2024 13:32:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-april-19th--huntsville-al-area-homes-for-sale.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-april-19th--huntsville-al-area-homes-for-sale.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Sneak Peek Listings for April 19th | Huntsville, AL Area Homes For Sale</title>
    <description> <![CDATA[ 
Sneak Peek Listings for April 19th








5036 Valley Cove - $450,000


5036 Valley Cove Drive SE, Owens Cross Roads, Alabama 35763


4 Bed | 4 Bath | 3,077 sqft


Talk to an MC Agent today for more info or call 256-270-9393



 ]]> </description>
    <pubDate>Fri, 19 Apr 2024 08:27:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/should-i-pay-buyers-agent-commission--pros--cons.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/should-i-pay-buyers-agent-commission--pros--cons.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Should I Pay Buyer's Agent Commission? | Pros &amp; Cons</title>
    <description> <![CDATA[ 
Should I Pay Buyer's Agent Commission? | Pros &amp; Cons








Are you thinking about whether to pay a buyer's agent commission? The National Association of Realtors (NAR) commission settlement has sparked discussions on this matter. The proposed changes could potentially shift the landscape, affecting how buyer compensation is advertised and offered. As you weigh your options, it's crucial to consider both the pros and cons. Our exploration dives into the implications of offering buyer agent commissions, shedding light on factors like market exposure, sales speed, and the impact on your bottom line. Whether you're a seasoned seller or new to the market, understanding these dynamics can help you make a more informed decision when buying or selling a home in Huntsville, Alabama. 


NAR Settlement Rule Changes


You've likely come across the headlines discussing the National Association of Realtors (NAR) commission settlement. Perhaps you're weighing the advantages and disadvantages of a seller offering a buyer commission.


Under the proposed settlement, which is still pending approval, a significant change involves the relocation of buyer compensation from the MLS to external platforms for advertising. While this compensation could be featured on brokers' websites, it won't be promoted in the MLS as before. Given this shift and the accompanying rule adjustments, you might wonder how many sellers will offer a buyer broker commission.


We have a little bit of insight into this with the northwest MLS experiment. They ran this for about two and a half years between October 2019 and March of 2022. From this experiment, they found two things. Number one is 99.3 of sellers still offered a buyer broker commission even when they did not have to offer that through their MLS. Number two is 94.5, or about 19 out of 20 sellers, still offered a co-op commission that was above 2 commission to that buyer broker.


Cons of Offering Buyer Agent Commission as a Seller


Let's start by looking at the cons. The primary downside revolves around the investment required from the seller's perspective. Offering a buyer broker commission entails a significant financial commitment. A concern that arises among some agents or sellers is that many local agents, both here in Huntsville and nationwide, lack sufficient experience to justify the compensation being offered. To illustrate, I recently gathered some statistics from our local board. It's worth noting that over 46, which equates to more than 2,300 out of over 5,000 local agents, have sold between 0 to 1 homes in the past 12 months. This raises the question: is offering buyer compensation worthwhile for someone who has only sold 0 to 1 homes in the last year?


Pros of Offering Buyer Agent Commission as a Seller


Let's dive into the pros. Imagine a hypothetical conversation where the seller expresses reluctance to offer buyer compensation, preferring to maximize their profits from the home sale.





Pro 1


The dialogue could unfold like this: The seller says, &quot;Hey, Agent, I'm hesitant to pay compensation for selling my home.&quot; To which the agent responds, &quot;I understand your concern. Let's consider the costs associated with showcasing and selling your home. Are you willing to cover expenses for an open house?&quot; The seller might reply, &quot;No, I prefer not to cover that.&quot; The agent continues, &quot;And what about compensating an agent who brings in a buyer?&quot; Again, the seller hesitates, &quot;I'd rather not pay for that either.&quot; The agent then asks about covering costs for drafting offers and handling other details. The seller might respond, &quot;I'd rather avoid those expenses too.&quot; At this point, the agent proposes an alternative: &quot;What if we only compensate the agent who successfully brings a buyer to purchase your home?&quot; This suggestion resonates with the seller, who approves, saying, &quot;That sounds great.&quot; In essence, this system mirrors the one we currently operate under.


Most sellers prefer not to pay piecemeal for various services like open houses, showings, offer drafting, and inspections. The commission model offers an efficient solution because sellers only pay if the agent successfully secures a buyer. It's a win-win situation for all parties involved.


As someone who frequently engages in both buying and selling real estate, I'm often in the seller's position. My aim is to receive offers from every potential buyer, regardless of their agent's experience level. Even considering the potential downside of dealing with agents who have limited sales experience or are entirely new to the field, my priority remains maximizing the sale price and minimizing the time on the market. Achieving this hinges on maximizing exposure to all potential buyers and their agents.


The primary role of the listing agent is to effectively market the property, determine its proper pricing, and provide guidance throughout the selling process. If the home isn't attracting offers, they offer advice on adjustments to marketing, pricing, or home updates.


However, adopting an a la carte system could lead to several drawbacks. Firstly, it might significantly reduce the pool of potential buyers, potentially resulting in similar or even higher costs for the seller while limiting exposure. Secondly, restricting the pool of buyers who can afford to compensate their agent would also shrink the overall number of potential buyers.


As a seller, my goal is to reach the widest possible audience. I want to attract buyers who may not be able to cover their agent's fees, as well as those from my own brokerage and other firms. This strategy allows me to maximize the profit from the sale of my home.


Pro 2


Another benefit of offering buyer agent compensation is the potential for a quicker sale. Increased exposure through more showings typically leads to a faster transaction. This heightened visibility may also spark a bidding war, resulting in multiple offers and increasing the likelihood of a successful sale. Conversely, not offering compensation could mean the difference between selling and not selling at all.


In reality, the number of days a home spends on the market can work against the seller. While this varies depending on the market, lingering on the market can signal issues to potential buyers. In the past, homes on the market for a year raised eyebrows, but nowadays, even 30 days can raise concerns, depending on the price point. The longer a home sits, the lower the eventual selling price tends to be. Therefore, increasing showings and receiving offers more quickly can ultimately lead to a higher net profit for the seller.


In conclusion, while some sellers initially opt for FSBO (for sale by owner), many eventually turn to real estate agents. Similarly, some sellers may experiment with offering a 0 buyer agent commission, resulting in varied outcomes. However, I believe most sellers will ultimately choose to pay a buyer agent commission. Unfortunately, delaying this decision could negatively impact the seller, as prolonged days on the market may lead to a lower selling price.


 



 ]]> </description>
    <pubDate>Fri, 12 Apr 2024 13:10:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-april-12th--huntsville-al-area-homes-for-sale.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-april-12th--huntsville-al-area-homes-for-sale.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Sneak Peek Listings for April 12th | Huntsville, AL Area Homes For Sale</title>
    <description> <![CDATA[ 
Sneak Peek Listings for April 12th


102 Steele - $399,000


102 Steele Drive, Madison, Alabama 35758


3 Bed | 2 Bath | 2,477 sqft


Talk to an MC Agent today for more info or call 256-270-9393
 ]]> </description>
    <pubDate>Fri, 12 Apr 2024 07:14:00 -0500</pubDate>
</item>
<item>
    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/should-you-hire-a-buyers-agent--pros-cons-and-new-rules.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/should-you-hire-a-buyers-agent--pros-cons-and-new-rules.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Should You Hire a Buyer's Agent? | Pros, Cons, and New Rules</title>
    <description> <![CDATA[ 
Should You Hire a Buyer's Agent? | Pros, Cons, and New Rules


 


The NAR Settlement has drawn attention, sparking discussions about its implications for homebuyers in real estate. At the heart of these discussions lies the fate of buyer agent commissions. Anticipated are two significant rule changes, pending approval, poised to reshape certain aspects of the homebuying process. Firstly, there's the expansion of buyer compensation advertising beyond the MLS, potentially transforming how buyers interact with property listings. Additionally, the proposed requirement for a buyer's agreement before property viewings aims to provide clarity and protection for both buyers and agents. But what do these changes mean for homebuyers navigating the market? From the potential benefits of comprehensive buyer consultations to the added paperwork and considerations, there's much to take into consideration when buying a home in Huntsville, Alabama.


Homebuyers and NAR Settlement: What's New


You've probably seen the headlines about the NAR (National Association of Realtors) Settlement, and you might be weighing the advantages and disadvantages of using a buyer's agent. Let's discuss what this settlement means for buyers. There are two significant rule changes expected to emerge from the settlement. It's important to note that the settlement hasn't been approved yet, but it appears likely to receive approval. These are the two key points to focus on.


Firstly, buyer compensation will be advertised outside of the MLS. This means it could be promoted anywhere, with broker websites being the most probable location. There may also emerge third-party portals such as BuyerAgentCommission.com, but we'll have to wait and see. Either way, the compensation is going outside the MLS.


Secondly, the major change, which I see as a positive for consumers, is the requirement for a buyer's agreement before viewing homes. While I acknowledge that the additional step and paperwork might not necessarily be viewed as a benefit, I believe that what truly benefits consumers is when buyer agents take the time to slow down the process and conduct a thorough buyer consultation. This involves guiding them through the entire process from A to Z, providing an estimated closing statement, outlining the cash needed for closing, and offering tips and strategies for succeeding in this market. Once again, I think this rule change could greatly benefit buyers going forward.


Why Buyer Agent Commissions Are Here to Stay


There's been talk in the headlines about the disappearance or reduction of buyer agent commissions, but I find that scenario highly unlikely. My main reason for this belief stems from the Northwest MLS experiment conducted between October 2019 and March 2022, which lasted about 2.5 years. Essentially, this experiment allowed sellers to offer either zero commission or any commission they preferred to a buyer's broker. Over this period, 99.3 of sellers continued to offer a buyer broker commission, with 94.5 offering a co-op commission exceeding 2.


Another reason I doubt the disappearance of buyer agent commissions is a recent survey conducted by 1000Watt. According to the survey, 70 of respondents still believe it's worthwhile to pay a real estate agent to assist with purchasing a home. Most people prefer not to pay for services on an a la carte basis. Sellers, for instance, wouldn't want to pay $500 for an open house to attract buyers, and buyers wouldn't want to shell out $100, $200, or $250 every time they visit a property or for viewings, inspections, etc.


Furthermore, many buyers may encounter obstacles if they attempt to handle transactions themselves. Engaging an attorney to draft a contract could incur fees ranging from $1,000 to $1,500, and attorneys, motivated by billable hours, may not prioritize streamlining the process. Delays in contract drafting, especially in multiple bid situations, could result in losing out on a desired property. Additionally, fees may escalate with each interaction, and if the buyer doesn't secure the home, they've essentially invested money without any tangible outcome. Most consumers prefer the simplicity of paying an agent upon successful completion, which aligns with the commission-based model. Consumers appreciate paying for results, making the commission model more appealing than a pay-as-you-go approach. The compensation must be adequate to attract competent agents and cover the risks associated with providing unpaid services.


Pros of Hiring a Buyer’s Agent


Let's explore the pros and cons of hiring a buyer’s agent.


One of the significant advantages of hiring a buyer's agent is representation. You have to ask yourself whether you want someone who has a fiduciary duty to get the highest price possible. This is often the case when dealing directly with the listing agent who may not also represent your best interests. If they're merely a transaction broker, focused on paperwork and compensated by the seller, their goal remains getting the highest price possible. Having someone negotiate on your behalf who prioritizes your best interests is crucial.


Another benefit is assistance in making informed decisions by considering both the pros and cons. While most people buy a home every 5 to 10+ years, experienced real estate agents assist buyers and sellers in transactions every month. Their wealth of experience enables consumers to make better decisions and potentially save money.


Navigating the home inspection process is also easier with a buyer's agent. In Alabama, we operate under a ‘caveat emptor’ principle, which means &quot;buyer beware.&quot; Although manageable with professional guidance, there are nuances to consider. Knowing when to conduct a home inspection, interpreting the report, understanding negotiable aspects, and identifying areas beyond the inspection's scope require expertise. A real estate professional who deals with this daily can offer invaluable assistance.


Additionally, a buyer's agent can help navigate the paperwork efficiently. We handle this paperwork daily at Matt Curtis Real Estate, having helped over 7,000 families buy or sell their home. We know the best terms to use and when to use them to secure the best deal for you. If you attempt this process alone, you may need to hire your own attorney, which could result in additional expenses and potential complications due to their lack of experience in consumer transactions.


Furthermore, a buyer's agent can assist in locating homes. While many people search on platforms like Zillow and Realtor.com, a licensed real estate agent often has access to off-market properties. At Matt Curtis Real Estate, we have access to numerous off-market properties that haven't been listed yet. Working with us provides early access to these properties, potentially giving you an advantage over other buyers in the market. With the knowledge and expertise a buyer's agent provides, you have the opportunity to secure a better deal and navigate the market effectively, avoiding overpayment by solely relying on a listing agent.


Cons of Hiring a Buyer’s Agent


One of the downsides is the investment in a buyer's agent. Naturally, you get what you pay for, but selecting the right agent can save you money, while the wrong one could end up costing you. When you examine the agents across the Huntsville MLS, which comprises over 5000 agents, unfortunately, approximately 2,300 of them have only sold 0 to 1 homes in the last 12 months. That's nearly 46 of our local agents. Sadly, some agents may not provide the level of service worthy of the commission you pay them, so this is definitely a drawback. It's crucial to ensure you find the right agent.


How can you do that? You can check their sales records and reviews, which you can find on platforms like Zillow. There are various websites you can visit, but Google is particularly useful for checking reviews. Simply search for &quot;top real estate agents in Huntsville, Alabama,&quot; or &quot;real estate agent reviews in Huntsville, Alabama,&quot; and you'll find reports on who provides top-notch service, often earning five-star ratings. While one downside is the cost, hiring the right agent can ultimately lead to savings in the long run.


Another consideration is that home values aren't likely to decrease. Even if you opt not to pay a commission and try to navigate the process on your own, what does that mean for you as a buyer? It suggests that the seller likely pocketed additional profit, which doesn't necessarily benefit the buyer in terms of the home's value.


If you're contemplating selling your home this year, stay tuned for my next video discussing the pros and cons of offering a buyer concession.


 



 ]]> </description>
    <pubDate>Fri, 05 Apr 2024 14:01:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-april-5th--huntsville-al-area-homes-for-sale.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/sneak-peek-listings-for-april-5th--huntsville-al-area-homes-for-sale.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Sneak Peek Listings for April 5th | Huntsville, AL Area Homes For Sale</title>
    <description> <![CDATA[ 



Sneak Peek Listings for April 5th





301 Broadway - $439,900


301 Broadway Lane, Madison, Alabama 35757


4 Bed | 3 Bath | 2,610 sqft


Talk to an MC Agent today for more info or call 256-270-9393


 






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    <pubDate>Fri, 05 Apr 2024 07:46:00 -0500</pubDate>
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