Huntsville, AL Housing Market Report | January 2025

North Alabama's real estate market is seeing notable shifts in sales activity, inventory levels, and pricing trends. While some areas remain competitive with multiple-offer situations, others are experiencing longer days on market, requiring sellers to adjust strategies. Builder concessions are influencing price trends, and affordability remains a key factor as supply increases. With interest rates fluctuating and the spring market approaching, buyers and sellers are navigating changing conditions that impact negotiations and overall market dynamics.

Major Takeaways

The local real estate market is making a strong comeback, with pending and closed sales up 7% year over year. Sales are rebounding from recent lows, even as the rest of the nation faces a 19-year low.

A 24.8% surge in new listings has led to a 27.5% increase in available inventory, bringing supply to 3.9 months—a level considered more balanced for both buyers and sellers.

The average days on market has risen 47.6% to 62 days, giving buyers more options while prompting sellers to adjust expectations, stay competitive, and be patient in today’s changing market.

Huntsville, AL Housing Market Report

Now, looking at the Huntsville submarket, the median sales price remains steady year over year at $330,000. The number of homes sold has jumped 11.6%, from 378 last January to 420 this year. Like other markets, Huntsville has seen a sharp increase in available homes, with inventory rising 34.3% from 1,738 homes last year to 2,335 now.

Athens, AL Housing Market Report

The Athens market has been one of the strongest performers. The median sales price has remained mostly unchanged, increasing by just $1,000 year over year from $313,000 to $314,000. Home sales have seen an even larger percentage increase than Huntsville, rising 20.2% from 114 last year to 137. Unlike other areas, Athens had a slight decrease in inventory, with 686 homes on the market compared to 697 last year. While most nearby markets have seen a significant increase in supply, Athens has remained steady.

Morgan County, AL Housing Market Report

In the Morgan County market, which includes Decatur and Hartselle, the median sales price has dropped by $13,000, from $252,000 last year to $239,000. Morgan County continues to be an area known for affordability. The number of homes sold has increased 14.6%, rising from 82 last year to 94. Inventory has surged, with a 53.2% increase, jumping from 325 homes last year to 498.

New Listings, Pending Sales, & Closed Sales

Looking at the broader North Alabama market, new listings are up 24.8%, rising from 989 last year to 1,234. With more homes available, sellers are facing increased competition and longer selling times.

Pending sales have been a key headline, increasing 7.3% in Huntsville, while the rest of the country has remained relatively flat. Pending sales rose from 900 last year to 966 in January 2025.

Closed sales have followed a similar trend, up 6.9% from 664 last year to 710 now.

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

The biggest headline is days on market increasing from 42 to 62. Sellers are having to be more patient, especially those with townhomes, which are sitting on the market for over 100 days. This is pushing the overall average higher. Both single-family homes and townhomes are staying on the market longer.

The average sales price has increased 1.4%, from $344,663 last year to $349,536. If you're wondering what your home might be worth, we’ve pinned a comment with a free home valuation tool. It's a great resource to see how your home's value has changed from 2024 to 2025.

The percent of list price received has remained steady year over year at 97.8% compared to 97.7%. A balanced market typically sits around 97%, so we're still slightly above that range. These numbers don’t fully reflect builder concessions, though. If those were factored in, the actual percentage would likely be closer to 95.5% to 96%.

The market has been competitive, with plenty of opportunities for buyers to negotiate. Up until this point, we’ve been looking at January numbers, but as we near the end of February, interest rates are starting to come down. With better weather and increased activity, buyers are becoming more aggressive, and competition is picking up. More full-price offers and multiple-offer situations are coming in. I even sold a personal investment home over the weekend at full price. Percent-to-list price ratios will likely start increasing over the next few months.

Housing Affordability, Housing Supply & Housing Inventory

Housing affordability plays a big role in the market. A score of 100 means the median household income can afford the median-priced home. Huntsville's affordability score dropped from 98 to 95, slightly below where we want it to be but still much better than many cities across the country. Huntsville remains a great place to live in terms of affordability.

Supply is up. This time last year, we were at 3.2 months of inventory, and now we're at 3.9 months, which is considered balanced. It has felt more like a buyer's market recently, but moving forward, the market may be split into two segments.

Average and below-average homes will likely feel more like a buyer's market, while hotter inventory—like the home I sold last week—will feel more like a seller’s market. That home sold within just a few days at full price.

Inventory is up 27.5%, giving buyers more choices. More homes are expected to hit the market as sellers look to take advantage of the busy spring selling season.

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• Housing Market Report (20)