Huntsville, AL Housing Market Report | December 2024

The North Alabama housing market is showing notable shifts as 2024 ends, with Athens emerging as a standout for its rising average home prices, surpassing Huntsville. Increasing days on market and inventory levels indicate a gradual move toward a more balanced market, offering both challenges and opportunities for buyers and sellers. Key trends like post-election sales surges and variations in submarkets, including Huntsville, Athens, and Morgan County, highlight the importance of understanding localized dynamics when navigating this evolving market landscape.

Athens’ Surge in Average Price

One of the most significant highlights is Athens' increase in average home price. In 2024, the average home price in Athens is $16,000 higher than in Huntsville. The two areas had been relatively close, alternating the lead, but Huntsville has now ceded the top spot to Athens in terms of the highest average sales price. This shift emphasizes Athens' growing appeal, with its excellent school districts, vibrant growth, and a strong alternative to city life in Huntsville.

Days on Market & Supply Trends

Days on market have continued to rise, correlating with a 9.2% year-over-year increase in inventory. This brings the supply level back to what was last seen in 2018, a few years before the pandemic. While inventory levels remain below historical averages, this represents a healthier supply compared to the low inventory during the pandemic.

Post-Election Sales Bump

Another key highlight was the post-election sales surge. Many buyers appeared to wait for the election results before making their moves, leading to a spike in sales during November. This uptick signals a positive outlook for the local market as we transition into 2025.

Huntsville, AL Housing Market Overview

Now, let’s break down the individual submarkets. In Huntsville, the average sales price decreased slightly year-over-year, dropping $4,000 from $382,000 to $378,000. The most notable trend across all submarkets, however, is the increase in homes sold.

December saw 622 closings in Huntsville, reflecting the heightened demand following November's post-election activity. This compares to 524 closings during the same period last year. Inventory also saw a significant year-over-year increase, with 2,347 homes on the market compared to 1,811 the previous year. This rise in supply has helped stabilize days on market, returning Huntsville to a more typical, pre-pandemic market pace.

Athens, AL Housing Market Overview

Turning to Athens, which stands out as a key performer, the average sales price jumped $47,000 from $347,000 to $394,000. This increase does not imply that individual home values rose that dramatically. Instead, it reflects a shift in the types of homes sold, with higher-priced homes making up a larger portion of sales in December.

In contrast, November saw more starter homes sold, with an average price of $333,000. December’s closings included more high-end properties, boosting the overall average price. Athens also experienced a healthy increase in the number of homes sold, rising from 166 to 194.

Inventory in Athens saw a 52% year-over-year increase, with 960 homes on the market compared to 697 the previous year. This growth is heavily influenced by new construction, as builders continue to purchase large tracts of land in Limestone County for new developments. Despite the influx of starter homes, Athens' average sales price has managed to outpace Huntsville, highlighting its growing appeal.

Morgan County Housing Market Overview

In Morgan County, the average sales price remained relatively flat, with a slight drop from $269,000 to $266,000 year-over-year. While price changes were minimal, the number of homes sold increased from 102 to 116.

Inventory also rose significantly, with 478 homes on the market compared to 361 the previous year, marking a 46% increase. New construction has contributed to the growing inventory, with more options available to buyers in Morgan County.

New Listings, Pending Sales, & Closed Sales

New listings remained flat year-over-year, with 914 in both periods. Year-to-date, though, new listings increased by 9.2%, which has contributed to a significant rise in days on market. Pending sales rose 2.8% year-over-year, reaching 733 compared to 713, and were up 3.3% year-to-date.

The market has stayed relatively steady from 2023 to 2024 regarding the number of sales. Closed sales increased 4.3% year-to-date, driven by a notable jump in November contracts, which were up 14.5%. This increase resulted in December closings rising to 1,026 compared to 896 the previous year. November's activity and the subsequent December closings stood out in 2024. Moving into 2025, there’s optimism about building on this momentum. Nationwide, 4 million resale homes annually is considered the floor, which has been consistent in 2023 and 2024. This contrasts with the over 6 million sales seen during the pandemic. A shift toward a more balanced market of about 5 million homes sold annually is anticipated in 2025.

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

Days on market increased from 41 last year to 59, signaling a shift toward a buyer’s market. Excluding new construction, the data suggests a more pronounced trend for resale homes, as new builds tend to skew the overall numbers.

The average sales price rose 3.1% year-over-year and increased 2.4% year-to-date, bringing the average home price in North Alabama to $356,164.

The percent of list price received is an important metric for sellers to understand potential negotiation room. A balanced market is typically around 97%, while figures below that indicate a buyer’s market. Numbers closer to 98% or higher lean toward favoring sellers. Currently, the percent of list price received dropped slightly from 97.9% last year to 97.6%. This figure does not account for the incentives builders are offering, such as rate buy-downs, fences, or design credits. Factoring out new construction would likely place this number below 97%, reinforcing the trend toward a buyer’s market.

Housing Affordability

Housing affordability is critical to the overall economy and directly impacts first-time homebuyers, nurses, police officers, and other essential workers. These groups need access to affordable housing near their workplaces to serve their communities effectively.

An affordability index score of 100 means the median household income can afford the median-priced home. A score below 100 indicates less affordability, while a score above 100 suggests greater affordability. Last year, the score was 98, but it has since dropped to 95 due to rising interest rates, which have reduced affordability slightly.

Housing Supply & Inventory

Housing supply increased from 3.4 months last year to 4 months this year, which is approaching a balanced market. A balanced market is typically considered 4 to 6 months of supply, while anything below 4 months is a seller’s market. Removing new construction from the data shows an even higher supply for resale homes, further emphasizing a buyer’s market heading into 2025.

Inventory has also risen, which is good news for buyers. While the market isn’t oversaturated, there’s room for more inventory. Listings increased by 20.9% year-over-year, climbing from 3,363 to 4,065. This level of inventory is comparable to 2018, which was a more stable period for the market. While it’s not at ideal levels yet, it’s a significant improvement from the pandemic years, indicating progress in the right direction.

Every buyer and seller’s situation is unique, with various submarkets, price points, and school districts to consider. As experts in the local market, we can help guide you through buying or selling, ensuring you make informed decisions.

We offer free buyer and seller consultations to help you navigate the process. Contact us at 256-333-MOVE, or visit us online at MattCurtisRealEstate.com.

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