2025 North Alabama Housing Market Recap + January 2026 Trends

Huntsville–Madison County Real Estate Update (Dec. 15, 2025 – Jan. 15, 2026)

The North Alabama real estate market closed out 2025 with a combination of stability and subtle shifts. Faster home sales and rising prices stood out as key trends—offering buyers and sellers a meaningful preview of what 2026 may hold. With inventory levels remaining tight and prices continuing to climb in most areas, competition stayed steady even as mortgage rates began to ease.

Whether you're planning a move this year or simply watching the market, here’s a clear breakdown of the latest trends—and what they could mean for you.

📊 Quick Snapshot: Huntsville–Madison County (Dec. 15–Jan. 15)

• Closed Sales: 505 homes sold (-6.5% YoY)

• Median Sales Price: $329,900 (+5.7% YoY)

• Average Days on Market: 55 days (down from 59 last month)

• Inventory: 2,350 homes (-16.1% YoY)

• Months Supply: 2.7 months

• Percent of List Price Received: 96.8%

Buyers are still contending with fewer options than a balanced market typically offers—generally considered to be around 5 to 6 months of supply—but homes are selling faster than they were a year ago, and sellers are holding firm on pricing.

🔍 Local Market Trends: End-of-Year Review

While the number of homes sold dipped slightly from December 2024, prices continued to rise—a trend seen throughout 2025. The median sales price in the Huntsville–Madison County area increased 5.7% year-over-year, indicating continued demand—especially for homes priced competitively in desirable areas.

Homes are also moving faster. The average number of days on market dropped to 55, down both month-over-month and year-over-year. This reflects ongoing buyer interest, fueled in part by easing mortgage rates and less urgency around bidding wars.

🔄 Statewide Housing Market Highlights

🏡 “The median home price in North Alabama rose 5.7% year-over-year, signaling continued demand even in a shifting market.”

North Alabama’s performance slightly contrasted broader statewide trends. According to the Alabama REALTORS® December 2025 Economic and Real Estate Report:

• Total residential sales volume statewide: $1.56 billion (up 20.0% YoY)

• Median home price statewide: $245,615 (up 15.9% YoY)

• Foreclosures: 531 (up 23.5% YoY)

• Active listings: 19,808 (up 7.3% YoY)

• Average Days on Market statewide: 78

Nationally, the housing market showed signs of recovery. Existing home sales rose for the third consecutive month, according to the National Association of REALTORS®.

🏡 Statewide Context: While North Alabama remained relatively stable, the broader Alabama market ended 2025 with a 3.7% increase in home sales and a 15.9% jump in median price. Rising inventory and softening mortgage rates could help improve affordability and boost buyer activity in 2026.

🧭 What Experts Predict for Alabama in 2026

According to Alabama REALTORS®, here are the top trends expected to shape the market this year:

• Improved Buyer Activity: Stabilizing mortgage rates could reignite interest from buyers who held off during 2025.

• Construction Headwinds: New construction permits dropped 8% statewide in 2025, which may lead to tighter inventory.

• Affordability Remains a Challenge: Alabama is still more affordable than many U.S. markets, but inflation, student loan debt, and rising prices are affecting first-time buyers.

• Demographic Shifts: The median age of first-time buyers rose to 40 in 2025, and homeowners are now staying in place for an average of 11 years.

• Seasonal Trends Hold: December sales dipped 3% from November but remained 3% higher than the previous year, reflecting normal seasonal cycles.

These trends point toward a cautiously optimistic 2026. If you're considering buying or selling, now is a great time to subscribe to my monthly market updates or request a personalized neighborhood report—especially in high-demand areas like Huntsville, Madison, and Limestone Counties.

🏘 Spotlight Areas Across North Alabama

(Explore more about each area by visiting their community pages: Meridianville, Harvest, New Market, Hazel Green, and Toney!)

Here’s how some of the local communities I serve performed in December:

🔹 Meridianville

• Median Sales Price: $340,000

• Homes Sold: 23

• Days on Market: 50

Meridianville continues to attract buyers with newer developments, great schools, and easy access to downtown Huntsville.

🔹 Harvest

• Median Sales Price: $323,950

• Homes Sold: 30

• Days on Market: 43

Inventory in Harvest is still tight, but well-priced homes are moving quickly.

🔹 New Market

• Median Sales Price: $304,990

• Homes Sold: 11

• Days on Market: 63

Buyers looking for a balance of space and affordability continue to explore New Market, especially with nearby growth.

🔹 Hazel Green

• Median Sales Price: $249,950

• Homes Sold: 11

• Days on Market: 56

Hazel Green remains one of the most budget-friendly areas with steady demand.

🔹 Toney

• Median Sales Price: $289,900

• Homes Sold: 13

• Days on Market: 74

Toney offers strong value for buyers seeking larger lots and newer construction homes.

❓ Frequently Asked Questions About the North Alabama Market

Q: Is now a good time to buy a home in Huntsville or Madison County?
A: Yes, for many buyers it is. With mortgage rates softening and competition easing, buyers may find more flexibility—especially in areas like Meridianville, Toney, and Harvest. Still, well-priced homes tend to sell quickly.

Q: What is the housing market like in North Alabama going into 2026?
A: The market is showing cautious balance. Prices continue rising moderately, and inventory remains tight. Builders are active, but permit slowdowns could limit supply later in the year.

Q: How long are homes staying on the market in Huntsville?
A: As of early 2026, the average is 55 days—faster than last year and a sign of continued demand, particularly for move-in-ready homes.

Q: Will home prices go down in 2026?
A: Prices are expected to hold steady or rise slightly in most areas. Unless demand drops significantly or rates spike again, a major decline is unlikely.

Q: Should I wait for interest rates to drop further before buying?
A: That depends on your financial situation. Waiting could mean missing out on a great home. If you're ready, now could be a smart time to buy before competition increases again.

💡 Final Thoughts + What to Watch in 2026

From my perspective as a local REALTOR®, one of the most important trends to watch is how buyers respond to easing mortgage rates. A meaningful drop could spark renewed competition. I’m also watching how builders adjust to lower permitting activity, which may impact new inventory in the months ahead.

Here’s what I’ll be keeping an eye on:

• Mortgage rates dipped to an average of 6.15% in December, with early 2026 trends pointing lower.

• First-time buyers face affordability challenges but continue to enter the market later in life.

• Inventory remains below historic norms but is slowly improving.

• Builder confidence remains, though new construction may slow.

Buyers and sellers alike should stay informed and be ready to move when the right opportunity arises—especially in family-friendly areas with strong schools and growing amenities.

📍 Want to Know What This Means for You?

📌 Found this update helpful? Feel free to share it with friends or pin it for future reference!

Whether you're thinking about buying, selling, or just staying informed, I’m here to help you navigate the market. I offer:

• Custom neighborhood market reports

• Strategic guidance for buyers and sellers

• Support from the first showing to closing day

👉 Contact me today and let’s talk about your 2026 real estate goals—whether you're buying your first home, upsizing, or exploring investment opportunities, I’ve got you covered.

Related Reads:

• 2026 North Alabama Real Estate Outlook

• Buying New Construction in Huntsville (Builder Incentives)

• Homebuyer FAQs for North Alabama