Huntsville, AL Housing Market Report | November 2024

The local real estate market is showing signs of shifting towards a more balanced environment, with trends indicating a return to pre-pandemic conditions. Inventory levels have risen significantly, providing more options for buyers, while housing affordability has improved slightly. These changes, along with a steady percentage of list price received, reflect adjustments in market dynamics as builders and sellers adapt to current conditions. Despite the increase in housing supply, the market still offers opportunities for both buyers and sellers to navigate with strategic approaches.

Major Takeaways

Morgan County’s Resilience

Morgan County has emerged as a standout leader in terms of resilience in the November 2024 market. It is the only local market showing year-over-year price growth, with an average increase of $13,000.

In contrast, our primary markets of Madison County, the Huntsville market, and Athens in Limestone County have experienced price decreases over the same period. While Morgan County’s growth isn’t driven by increased sales year-over-year, it reflects a rise in average prices. This trend is likely tied to buyers seeking more affordable options, especially with the housing affordability index below 100 in our area and interest rates remaining elevated.

Price Declines in Huntsville and Athens

Morgan County has led the North Alabama market in price increases, but Huntsville and Athens have seen year-over-year declines. Huntsville’s average price has decreased by $12,000, while Athens has experienced a significant drop of $32,000 on average. Athens, which has been a highlight of the market, has seen this decline primarily due to the high demand for new construction starter homes. The average value of individual homes hasn’t necessarily fallen; instead, the average price has decreased because the market mix now includes more lower-priced new construction homes.

Post-Election Market Boost

The November 2024 market report for North Alabama also highlights a post-election boost in activity. Pending sales rose by 15.7% following the election, and the first week of December saw strong demand. For our team, December recorded the highest number of homes sold since July 2024.

This level of activity is unusual for December, signaling a renewed wave of buyer interest. It’s a positive indicator for the 2025 real estate outlook, which is shaping up to be a stronger year for sales in the Huntsville market and across the U.S.

Extended Days on Market

At Matt Curtis Real Estate, we’re closely monitoring the extended days on market. Homes are taking 57% longer to sell compared to last year. This reflects a shift from the extreme seller’s market of recent years to a more balanced and typical market.

We’re seeing market conditions that resemble the pre-pandemic environment of 2019 in terms of days on market and inventory. While a 57% increase is a significant percentage, it’s important to note that this comparison is against record lows. There’s no immediate cause for concern. If this trend were to persist into 2025 or 2026, it could indicate a shift to an extreme buyer’s market. For now, the market remains balanced.

Seller Strategies Evolve

Seller strategies are adapting as they face increased competition from new construction homes. Sellers are becoming more aggressive with pricing and are adjusting their timelines to account for the slower-moving market. Inventory has risen by 22.9%, contributing to the more competitive conditions currently shaping the 2024 market.

Huntsville, AL November Housing Stats

As previously mentioned, the average sales price in Huntsville has decreased year-over-year. It has dropped from $375,000 this time last year to $363,000 this year, a decline of $12,000. This represents an additional $10,000 drop from the previous month’s average sales price of $373,000.

On a positive note, more homes have been sold. In the Tennessee Valley, 545 homes were sold in November compared to 475 during the same period last year. Additionally, the trend of increasing homes on the market continues. Huntsville has seen a 35% increase in inventory, with 2,513 homes available compared to 1,856 in November of last year. This increase provides more options for buyers and signals a return to inventory levels similar to those of 2019.

Athens, AL November Housing Stats

The big surprise in Athens is that the average sales price has dropped by $32,000, from $365,000 this time last year to $333,000. Athens has been a standout in the market, with average sales prices sometimes surpassing Huntsville earlier in 2024. That was not the case in November 2024. The average sales price also declined from $380,000 in October, marking a significant drop. This change is not due to a decrease in individual home values but rather reflects the high volume of new construction starter homes sold in November.

More homes are being sold in Athens, with 188 sales compared to 144 last year. There has also been a significant 45.6% increase in homes on the market year-over-year, rising from 677 to 986. Much of this new inventory is new construction, particularly starter homes.

Morgan County, AL November Housing Stats

Morgan County was the standout market in terms of pricing for November 2024. The average sales price increased by $13,000, rising from $275,000 last year to $290,000. Buyers are drawn to the affordability of the Morgan County market, allowing sellers to raise prices.

The total number of homes sold remained flat at 105 compared to last year. Inventory, however, has surged by 46%, with 490 homes on the market compared to 367 last year. This increase offers opportunities for buyers looking to take advantage of the more affordable options in Morgan County.

North Alabama Housing Market Overview

New Listings, Pending Sales, and Closed Sales

New listings are up slightly, with 1,126 homes listed compared to 1,105 last year, an increase of 1.9%. Year-to-date, new listings are up by 9.7%, reflecting a steady influx of inventory. Homes are also staying on the market longer, contributing to the growing inventory levels.

Pending sales have rebounded after a slight dip earlier this year. There were 894 pending sales in November compared to 773 last year, a year-over-year increase of 15.7%. Year-to-date, pending sales are up by 3.5%. The post-election bump contributed to this positive trend.

Closed sales increased by 6.1%, with 924 homes sold in November compared to 871 last year. Year-to-date, closed sales are up by 3.3%, signaling continued buyer activity in the market.

Days on Market

One key trend is the significant increase in days on market. Homes are staying listed much longer than they did a year ago. The average days on market has risen from 33 to 52. Some homes are not selling at all, with more properties being withdrawn or expiring due to overpricing. While 52 days is not an alarming figure—a healthy range is around 45 days—an ongoing rise beyond 60 days into 2025 could pose challenges for sellers.

I expect this number to improve in 2025 as the market heats up, driven by more pending sales and stronger post-election demand. Overall, 2025 is shaping up to be a promising year for sellers.

Average Sales Price, Percent of List Price Received, Housing Affordability

The average sales price has remained fairly stable, showing a slight increase of 0.8% from $342,205 to $344,938. This is down from the summer peak of $371,865, which aligns with the seasonal trend of higher prices during summer. The drop is partly due to a surge in new construction starter homes, as builders aim to clear inventory for financial reasons. These motivated efforts have impacted average sales prices. I anticipate prices to rebound in 2025, particularly in the spring and summer, as interest rates are expected to decline further. In fact, another rate drop was just announced.

The percent of list price received has stayed relatively steady, moving from 97.8% to 97.7%. This is a balanced figure, though builder incentives like rate buy-downs or added features often skew this number slightly, making the actual percentage likely closer to 97%.

Housing affordability has improved slightly, moving from 93 to 95. A score of 100 indicates that the median household income can afford the median-priced home. While 95 is not ideal, it is not a cause for concern. I’d like to see this approach 100 in 2025 as interest rates ease.

Housing Supply & Housing Inventory

Housing supply has increased from 3.5 months to 4.1 months. A balanced market typically ranges from 4 to 6 months of supply. While last year was technically a seller’s market, it didn’t feel that way, and today’s market, despite being balanced, often feels like a buyer’s market due to the incentives offered by builders and sellers being more competitive with pricing.

Inventory has grown by 22.9%, offering more options for buyers. The number of homes available has increased from 3,418 to 4,201. These levels are comparable to 2019 figures and reflect a return to pre-pandemic inventory norms.

If these numbers feel overwhelming, or if you’d like a personalized analysis of how this impacts your goals, whether buying your first home or selling in 2025, Matt Curtis Real Estate is here to help. As Alabama’s top real estate team for the past five years, we’re committed to providing our signature five-star service. Call us at 256-333-MOVE to get started.

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