Huntsville, AL Housing Market Report | September 2025

The North Alabama real estate market is showing shifts in sales activity, pricing, and inventory across multiple counties. Buyers and sellers are facing changes in competition, days on market, and home availability, making pricing, presentation, and professional guidance critical. Understanding these trends can help you make informed decisions whether you’re entering the market, considering a sale, or evaluating current home values.

Huntsville–Madison County Market Update | September 2025

The Huntsville–Madison County market saw a 7.7% increase in homes sold, rising from 623 last year to 671 this year, showing a solid boost in buyer activity. The median sale price came in at $320K, down from $338K a year ago. The big story this month is that inventory is down nearly 8%, reversing the trend of increasing inventory we’ve seen most of the year. There are now 2,427 homes on the market, compared to 2,633 last year. Homes are also taking 29% longer to sell, averaging 54 days compared to 42 a year ago.

Athens–Limestone County Market Update | September 2025

The Athens–Limestone market saw a 14% increase in homes sold, jumping from 190 last year to 217 this year, marking strong activity for fall. The median sale price came in at $318K, down slightly from $324K a year ago. Inventory stayed steady with 963 homes on the market, nearly identical to last year. The big story here is that homes are taking 62% longer to sell, averaging 63 days compared to 39 a year ago

Morgan & Lawrence Counties Market Update | September 2025

The Morgan–Lawrence market saw a 23 percent increase in homes sold, climbing from 119 last year to 146 this year, reflecting strong fall activity. The median sale price came in at $244K, down from $265K a year ago. There are 504 homes on the market, just slightly higher than 486 last year. Homes are taking 14% longer to sell, averaging 50 days compared to 44 a year ago.

North Alabama Market Overview

Across the entire ValleyMLS area, closed sales were up 9.5% compared to last year, showing continued strength in buyer activity even as rates remain elevated.

The median sales price dipped 1.6% year-over-year to $305,000, while inventory rose 4%, giving buyers a few more options than we’ve seen in prior months.

Homes are taking longer to sell, with the average days on market jumping 36% to 61 days. This is a clear sign that pricing, presentation, and who you hire matters as the market normalizes.

Single-Family Homes

For single-family homes specifically, pending sales surged 25% as interest rates began to fall in September, and closed sales were up 9% year-over-year.

The median price ticked down slightly to $310,000, while the average price held steady around $349,000, a less-than-1% dip.

The average time on market climbed to 60 days, up 36% from last year. Inventory also rose 6.6% to about 4,500 active listings, equal to a 4.3-month supply, suggesting we’re still in a balanced market.

Townhomes & Condos

The townhome and condo market told a different story. New listings dropped 38% and pending sales were down 17%, but closed sales actually rose 12% compared to last year.

Prices softened, with the median price falling 6.4% to $234,000 and the average price down 7% to $268,000. Inventory plunged 26%, and months-supply dropped 29%, tightening this segment considerably.

Key Trends & Takeaways

Here are a few takeaways from the data:

• Sales momentum is picking up. Pending sales are way up from last year, hinting at stronger activity heading into Q4 as interest rates drop.
• Prices have flattened but remain stable. Affordability has improved with increased wages, interest rate drops, and home values holding steady. Expect to see home values begin to increase.
• Inventory is up slightly overall, but most of that gain is in single-family homes. Townhomes and condos are tightening as builders exit that market. Madison County saw an approximate 8% drop. This is also the first month in the past 24 months without a double-digit increase in inventory, as inventory across the Tennessee Valley rose 6.6%.
• Homes are taking longer to sell, which means sellers need to focus on pricing strategies, staging, and who they hire for marketing and advice.

What It Means for Home Buyers and Sellers

If you’re a buyer, you have more options today than earlier this year and slightly less competition, but more buyers are coming into the market as interest rates drop. Take advantage of the lower rates, motivated sellers, and new construction promotions.

If you’re a seller, success comes down to pricing it right from day one, making sure your home shows at its best, and hiring the best. There’s been an increase in searches nationwide for “help with mortgage,” which is why we’re relaunching our instant offer program to assist these sellers.

With homes taking longer to sell, Who You Hire MATTers more than ever. If you’d like a personalized market analysis for your neighborhood or you’re thinking about buying or selling, reach out to our team at Matt Curtis Real Estate at 256.333.MOVE.

Tags

• Housing Market Report (24)
• housing market update (3)