Compiled by Speakin’ Out News (Sources: AL.com)
HUNTSVILLE, AL — March 18, 2025 — After kicking off the year with a strong start, the Huntsville-area housing market showed signs of slowing in February — a shift that some experts link to recent federal job cuts and rising interest rates.
For the first time in several months, home sales in the Huntsville metro area did not outperform the previous year’s numbers, according to ValleyMLS data. While the overall dip was modest, it has raised concerns among realtors and economists who have been closely watching market trends.
Ben Wales of Gateway Alabama Realty Group had warned back in February that expected federal job reductions could undercut January’s momentum — and now believes those effects are materializing.
“February confirmed what we were concerned about,” Wales said. “The federal job cuts, especially in defense and research sectors, are starting to impact buyer confidence.”
University of Alabama economist Bennie Waller, who serves as the William Cary Hulsey Fellow, echoed the sentiment. “Huntsville is a growing, dynamic market with strong job opportunities,” he said. “But recent cuts in key federal sectors like defense, tech, and research — combined with rising interest rates — are contributing to a noticeable market slowdown.”
Realtor Matt Curtis also acknowledged the shift. “What we saw in February was a change in momentum,” he said. “Buyers are becoming more cautious, and sellers are having to adjust.”
Sales Breakdown Across North Alabama
In Madison County — home to Huntsville — 528 homes were sold in February, down from 545 in February 2024. Pending sales stood at 691. Surrounding areas also showed mostly negative trends:
- Decatur (Morgan & Lawrence counties): 82 homes sold, down from 107 last year; 127 pending
- Jackson County: 13 homes sold, down from 26; 19 pending
- Marshall County: 64 homes sold, a slight increase from 63; 19 pending
- Athens (Limestone County): 165 homes sold, up from 158; 296 pending
Athens was the only market to show a year-over-year sales increase, driven by new construction and population growth.
Prices and Inventory Trends
Home prices showed mixed results. Huntsville’s average sales price dropped from $330,000 last year to $318,000 — a rare decline not seen in surrounding counties, where prices actually rose:
- Athens: $375,000 (up from $322,000)
- Decatur: $267,000 (up from $242,000)
- Marshall County: $255,000 (up from $225,000)
- Jackson County: $322,000 (up from $226,000)
Meanwhile, housing inventory across the region rose significantly. In Huntsville, active listings jumped to 2,392 homes in February, compared to 1,755 a year ago. Homes are now sitting on the market longer — an average of 71 days, up from 46 in 2024.
Other markets followed a similar pattern:
- Athens: 940 homes listed (up from 690); 74 days on market (up from 40)
- Decatur: 502 listings (up from 323); 61 days on market
- Marshall County: 395 listings (up from 243); 81 days on market
- Jackson County: 131 listings (up from 84); 76 days on market
Curtis pointed out that longer days on market — up nearly 43% — and increased builder incentives are putting added pressure on sellers to price competitively and offer perks to attract buyers.
