February 2025 Huntsville Housing Market Update: More Homes, Better Deals for Buyers!

The Huntsville, Alabama real estate market has seen notable changes in early 2025, with inventory increasing, prices stabilizing, and buyers gaining more options. As more homes become available, sellers face increased competition, leading to longer times on the market in some areas. At the same time, home affordability has improved, thanks to factors like rising wages and more favorable interest rates. The housing supply is moving toward a more balanced market, and spring activity is already picking up with more showings and increased contracts. Buyers and sellers alike are adjusting to the shift, with new opportunities emerging in both Huntsville and surrounding areas.

More Choices for Buyers, More Competition for Sellers

If you're a buyer, there’s some good news. Inventory is up 24.5% year over year, giving you more homes to choose from. Affordability is also improving due to several factors. The average sales price, which we’ll cover in a moment, has remained relatively flat year over year. Wages have increased with inflation, and interest rates have started to improve over the last few weeks, creating more affordability and opportunities for buyers this spring.

Sellers in February faced more competition with more homes on the market. As a result, days on market increased by 42.9% year over year, bringing the average to 70 days. While that’s still a typical timeframe, it’s a significant jump from the pandemic era. Sellers also had to compete with builders, whose incentives—such as interest rate promotions, discounts, and other offers—put additional pressure on pricing.

Spring activity is picking up, and we’re starting to see multiple offers, including full-price offers on top listings. I recently sold two of my rental property flips, both at full price. One sold in less than a week, and the other in just one day.

Huntsville, AL Housing Market Report

Let’s start with the submarkets in the Huntsville area. In Huntsville, the median sales price dropped by $12,000 year over year, down to $318,000 in February from $330,000 last year. Home sales remained steady at 528 compared to 545.

The biggest change is the increase in available inventory, with more homes sitting on the market. Huntsville saw a 36.2% increase in supply, with 2,392 homes available at the end of February compared to 1,755 the year before.

Athens, AL Housing Market Report

Athens has been the standout in terms of median sales price growth. The median price rose by $53,000 year over year, reaching $375,000 in February compared to $322,000 last year, surpassing Huntsville’s median sales price.

Fewer homes sold in Athens, with 165 transactions in February 2025. With a smaller sample size, the median price can fluctuate, but overall, Athens has been trending higher than Huntsville. The number of homes sold remained relatively stable, with 165 this year versus 158 last year.

Inventory has also increased, with 940 homes available—almost 1,000 options—compared to 690 last year, a 36.2% jump.

Morgan County Housing Market Report

Morgan County, including the Hartselle and Decatur markets, continues to attract buyers looking for affordability. The median sales price increased by $25,000 year over year, reaching $267,000 from $242,000.

The number of homes sold was lower, with 82 sales compared to 107 last year. Despite this, inventory surged, with 502 homes available versus 323 last year, marking a 55% increase in Decatur.

New Listings, Pending Sales, & Closed Sales

Looking at the overall market, things remained steady. New listings were nearly unchanged at 1,301 compared to 1,320 last year. Pending sales were also flat at 1,037 versus 1,032. Closed sales dipped slightly, down about 4% from 895 to 859.

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

Days on market increased with the rise in supply, up 42.9% from 49 days to 70.

The average sales price saw a slight 1.8% increase, moving from $338,980 last year to $345,082. If you're considering selling and wondering how much your home has appreciated, check the pinned comment on the YouTube video. Click the link, enter your home’s details, and we’ll send you a free home valuation.

The percentage of list price received dropped slightly from 98.2% to 97.8%. While still a solid number, it doesn’t fully account for builder concessions. Realistically, it's closer to 97% or slightly lower, making it more of a normal negotiating market for buyers. Unless a home is in high demand, there’s often room for negotiation, especially for homes that have been sitting on the market.

For sellers, if your home hasn’t received much interest in the first couple of weeks, it may be time to adjust your price or be more flexible when offers come in.

Housing Affordability, Housing Supply & Inventory

Housing affordability is measured by the affordability index, which compares the median home price to median household income. A score of 100 means the average home is considered affordable. Last February, Huntsville was at 92, but that number has improved to 96, a positive sign compared to many other markets across the country.

Inventory continues to rise, with supply increasing from 3.2 months last year to 3.9 months now. A balanced market is typically between four and six months, meaning Huntsville is getting closer to that range.

Overall inventory is up 24.5%, with 3,698 homes on the market compared to 3,181 last year. These numbers have returned to pre-pandemic levels, even aligning with 2018 figures.

With more homes available and affordability improving, it's a great time for buyers in Huntsville. Sellers are also seeing strong activity, with multiple offers, increased showings, and more contracts being signed as of March. Both buyers and sellers can expect an active spring and summer market.

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