Q3 Report: Market Stabilization Continues Amid Price Dip and Higher Days on Market

The Madison County residential real estate market continued its stabilization trend in the Third Quarter of 2025, according to the latest report from the Huntsville Area Association of REALTORSĀ® (HAAR). While sales volume remained largely flat, the market saw notable shifts in median price and time on market.

Key Takeaways from Q3 2025:

  • Median Sales Price Decreased: The median sales price slightly decreased by 2.1% year-over-year, settling at $330,000, down from $336,995 in Q3 2024. This marks the second median price decline in the last three years as the market adjusts.
  • Sales Volume is Flat: A total of 1,961 homes sold, representing a slight 0.5% decrease from Q3 2024. The total sales figure is still 2.1% higher than the three-year third-quarter average.
  • Days on Market Increased: Homes spent more time on the market, with the Average Days on Market rising to 51 days, a notable increase from 39 days in Q3 2024.
  • Inventory is Down: Total units on the market at the end of September 2025 stood at 2,427, an 7.8% decline from the previous year. However, the Months of Supply for all homes remained unchanged at 4.0 months compared to Q3 2024.
  • Pricing Trends Normalize: Sales above the list price dropped to 16%, while 36% of homes sold below the asking price.
  • Mortgage Rate: The 30-year fixed mortgage rate was noted at 6.3% in the week ending September 2025.
  • Most Active Segment: The $350,000–$500,000 price range recorded the most sales, accounting for 24% of all transactions.