Huntsville Home Sales Decline Amid Inventory Increase

A view of homes in Huntsville indicating real estate activity.

Huntsville, August 19, 2025

News Summary

In July, the Huntsville housing market experienced a decline in home sales, with 648 homes sold, down from 703 in the previous year. Despite this, pending sales rose by nearly 15%, indicating a potential market recovery as interest rates hit a four-month low. The median sales price fell to $341,000, providing buyers with new opportunities as inventory increases. Local real estate professionals remain optimistic about future improvements, particularly if interest rates continue to decrease.

Huntsville

In July 2025, home sales in the Huntsville area saw a decline compared to the previous year, with the total number of homes sold at 648, a decrease from 703 in July 2024, although an increase from 635 in June 2025. The current market shows 748 pending sales across Madison County, indicating potential recovery as interest rates have dropped to a four-month low.

The drop in home sales has been coupled with a significant jump in pending single-family sales, which increased by nearly 15%. Experts believe there is a possibility for positive year-over-year sales growth anticipated for August and early fall, particularly if the Federal Reserve makes further cuts to interest rates.

Realty professionals express optimism about the evolving market dynamics. As home inventory rises, buyers are experiencing a change that may favor them. The median sales price for homes in Huntsville was reported at $341,000 in July, a decrease from $345,000 in June and $350,000 in July 2024. Despite the fall in median prices, some buyers are finding homes priced above expectations.

Local Market Insights

In Athens, there were 196 homes sold, which is an increase from 183 in June but down from 213 in July the previous year. The median home price in Athens fell to $320,000 in July, down from $322,000 in June and $335,000 a year ago. The market is also seeing 294 pending sales in this area.

Decatur saw a slightly more positive trend, with agents selling 127 homes in July, which was down from 159 in June but a notable improvement from 117 in July 2024. The median price for homes in Decatur is $258,000, down from $265,000 in June, but up from $250,000 last year. The number of pending sales in Decatur stood at 124.

In Marshall County, 89 homes were sold in July, a decrease from 100 in June and 98 a year ago. The median home price rose to $288,000, increasing from $273,000 in June and $244,000 last July, indicating a growing demand despite lower sales volume. There are currently 79 pending sales in that area.

Market Trends and Future Predictions

The overall inventory of homes has increased, totaling 2,731 properties available in the Huntsville market compared to 2,610 at this time last year. Homes are taking longer to sell, averaging 47 days on the market, compared with just 38 days in 2024. Similar trends are seen in Athens, where homes average 61 days on the market, and Decatur, where the figure is 62 days.

Buyers now have more options, with the inventory rising by 14.2% year-over-year, giving them leverage. However, the National Association of Realtors has reported a national dip of 2.7% in home sales from June to July, reflecting a broader trend that may affect local markets.

New listings for single-family homes have risen by 2.7%, while townhome listings plummeted by 55.1%. Single-family homes are now averaging 42 days on the market, slightly up from 39 days last year, where townhouses are taking longer at an average of 66 days.

Conclusion

The July 2025 home sales data signals an ongoing transition in the Huntsville real estate market, with declining sales figures contrasted by signs of potential recovery. The rise in home inventory coupled with decreasing median prices may create a more favorable environment for buyers, particularly as interest rates stabilize. Local real estate professionals remain hopeful for continued improvement in the coming months.

FAQ

How many homes were sold in Huntsville in July 2025?

In July 2025, a total of 648 homes were sold in Huntsville.

What was the median home price in Huntsville in July 2025?

The median sales price for homes in Huntsville was $341,000 in July 2025.

What trends are being observed in the Huntsville housing market?

There is a rise in home inventory and longer days on the market, with a potential recovery expected if interest rates continue to decrease.

Key Features Chart

Region Homes Sold (July 2025) Median Sales Price Days on Market Average Pending Sales
Huntsville 648 $341,000 47 748
Athens 196 $320,000 61 294
Decatur 127 $258,000 62 124
Marshall County 89 $288,000 64 79

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Additional Resources

STAFF HERE HUNTSVILLE WRITER
Author: STAFF HERE HUNTSVILLE WRITER

The HUNTSVILLE STAFF WRITER represents the experienced team at HEREHuntsville.com, your go-to source for actionable local news and information in Huntsville, Madison County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Panoply Arts Festival, Rocket City Brewfest, and Huntsville Comic & Pop Culture Expo. Our coverage extends to key organizations like the Huntsville/Madison County Chamber of Commerce and HudsonAlpha Institute for Biotechnology, plus leading businesses in aerospace, defense, and manufacturing that power the local economy such as Boeing, SAIC, and Mazda Toyota Manufacturing. As part of the broader HERE network, including HEREBirmingham.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.

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