Huntsville, Al Housing Market Report | August 2025

Is North Alabama’s housing market cooling off — or about to heat up with the big Space Command announcement? In today’s video, we’ll break down the latest numbers from August 2025 to see where the market really stands. Then, we’ll zoom in on Athens, Morgan County, and Huntsville to give you the local picture. Whether you’re buying, selling, or just watching the market, this update will keep you in the know — so let’s jump in.

North Alabama Housing Market Overview

Across the ValleyMLS region, single-family homes tell an interesting story. New listings in August came in at just under 1,500, which is basically unchanged from the same time last year. Pending sales ticked up by about 4.5 percent and closed sales rose slightly as well, showing that demand is still steady. The median sales price was relatively flat year over year from just under $310,000 last year to around $309,000 this year. While that’s not a dramatic shift, the pace of the market certainly is. Homes are now sitting on the market for an average of 56 days, compared to 40 days last August — a nearly 40 percent increase in time to sell.

The townhouse and condo market is showing even more dramatic shifts. New listings were down more than 20 percent as many builders are exiting the townhouse market. Pending sales dropped a similar amount, and closed sales declined by nearly 18 percent. Prices in this segment are also under pressure, with the median sales price falling by over 14 percent compared to last year. And perhaps most telling, condos and townhomes are taking more than 80 percent longer to sell than they did just a year ago.
Inventory is building in the single-family segment, rising almost 12 percent, which means more homes are available and months of supply has crept higher as well. By contrast, condos and townhouses are seeing fewer listings overall, so inventory is tighter, but that hasn’t translated into faster sales. Affordability is still a concern across both segments. Buyers are securing homes at slightly less than list price compared to last year, and the housing affordability index has slipped, showing that rising borrowing costs continue to weigh on many households.

Huntsville, Al Housing Market Report | August 2025

Now let’s zoom into a few key markets.

In Huntsville and Madison County, the market is essentially flat compared to last year, with sales and prices holding steady. The median price edged up slightly to $330,000 from $326,000, while the number of homes sold was nearly identical — 642 this August versus 644 a year ago. Inventory was only modestly higher at 2,699 homes compared to 2,655 last year. The real shift is in pace: homes now take 52 days to sell compared to just 37 last August.

Athens, AL Housing Market Report | August 2025

In Athens, homes are taking about fifteen days longer to sell than they did a year ago. That slowdown in pace comes alongside a dip in sales, with 197 homes sold in August compared to 223 last year. The median price dropped slightly as well, from $330,000 down to $325,000. Inventory is up, giving buyers more options. That means buyers are gaining negotiating power while sellers must be sharper on pricing and marketing to attract offers.

Morgan Housing Market Report | August 2025

In Morgan County, sales also slowed. Just 125 homes sold in August compared to 151 last year. Interestingly, the median price held steady at around $260,000, so while fewer homes are selling, prices aren’t retreating in a meaningful way. Inventory jumped to nearly 600 homes on the market, and the average days to sell stretched from 40 to 54. Buyers here have more choices and more time, but sellers are realizing it takes longer to get a deal done.

Deep Dive: What’s Driving the Trends

So what’s driving these trends? The most striking change across the board is how much longer homes are staying on the market. More inventory means buyers have more choices, which naturally leads to longer decision-making cycles. Mortgage rates also continue to weigh on urgency; with higher borrowing costs, buyers are more cautious before jumping in. And the weakness in condos and townhouses is pulling the overall averages up, since that segment has slowed the most.

Price pressures are mixed. Single-family homes are essentially flat — a sign that the market has found a balance between supply and demand. Condos and townhomes, though, are down sharply in price, reflecting softer demand. The increase in inventory and months of supply in the single-family market means the market is shifting closer to balance. Sellers no longer hold all the power, and buyers now have more breathing room in negotiations.

Affordability is the other key factor. Even with stable home prices, higher interest rates and borrowing costs are making it harder for first-time buyers to enter the market. That explains why homes are taking longer to sell, and why sellers are seeing offers come in below list price more often than last year.

What It Means for Buyers & Sellers

For buyers, this is welcome news. You now have more homes to choose from, more leverage to negotiate, and more time to make decisions. If you’ve been waiting out the fast-paced seller’s market, conditions may finally be tipping in your favor.

For sellers, the story is different. Strategic pricing is absolutely critical, and high-quality marketing makes all the difference. Homes that are staged well, photographed well, and priced correctly are still selling — but those that miss the mark risk sitting on the market for weeks longer than expected. Sellers need to adjust expectations from the quick sales we saw over the last couple of years.

Takeaways

Overall, August 2025 shows a market that’s largely flat in sales and pricing, but clearly slower in terms of pace. Days on market are stretching longer across nearly every segment, which signals a shift toward balance. For buyers, this means opportunity. For sellers, it means adapting your strategy to win attention in a more competitive environment.

But there’s also a wild card: Space Command. With thousands of jobs projected to move into Huntsville, today’s flat market could quickly flip back to double-digit appreciation as these jobs begin to hit over the next few years. That kind of demand shift would tighten supply and put sellers back in the driver’s seat. Timing, as always, will be everything as many savvy buyers are looking to get ahead of this trend.

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