Here’s a look at home-buying trends in the Rocket City

The housing market is seeing a bump these days in the Huntsville area, as more people are opting to buy homes rather than rent in the area. The increase in demand has also reduced the supply, which has its own effects on the housing market, we have found.

Here’s what’s new:

Number of first-time homebuyers has decreased

Nationally, the number of people buying their first homes has steadily decreased over the last decade. This is due in large part to the rapid increase in median sales price of homes, according to the Department of Housing and Urban Development.

Over the past decade (which has included recoveries from both the Great Recession and the COVID-19 recession) U.S. home values grew by more than 95 percent, a HUD report says.

That doesn’t bode well for those potential home buyers who are just starting their careers or have a limited budget for a new home.

Nathan Stuckey of RealtySouth said the state of Alabama’s stats regarding first time home-buyers has remaines consustent with those of the rest of the country.

“Alabama tends to follow national trends with regard first time homebuyers.   For example, in 2013 the share of all homebuyers who were first timers was approximately 38% a good long term average.  

In 2022, it was at 26% and in 2023 it was at 32%. In 2024 that share of first time homebuyers decreased to 24%, the lowest since 1981. Factors affecting those first time homebuyers like rising home prices and limited inventory make it a challenging environment at present for that group.”

Nathan Stuckey, Marketing Director, RealtySouth

Home loans applications have increased in Huntsville market

The consistent drop in first-time home buyers shows that the demand and cost of homes has increased, as has the number of mortgage applications.

According to the Mortgage Bankers Association, mortgage applications nationwide increased 11 percent in April, after a period of of declining applications in previous months.

We spoke with mortgage banker Scott Ellis of Bryant Bank in Huntsville to get some insight into how the local market has reflected the national trend.

“We have seen a steady increase in mortgage applications this year compared to the last two years. It began in January of this year.  Perhaps many clients were waiting until after the elections to pull the trigger on a new home. 

We have experienced brief interest rate drops only to be followed by rising rates.   All in all, interest rates so far this year have been in a fairly tight range.”

Scott Ellis, VP Mortgage Loan Officer, Bryant Bank

Local real estate stats at a glance

According to the Huntsville Area Association of Realtors, the first quarter of 2025 showed growing inventory levels and steady sales despite homes spending more days on market.

Here are some first-quarter stats for 2025’s real estate outlook in Madison County:

• Home sales increased 7% compared to Q1 2024, with 1,556 units sold.
• Available inventory surged 40% year-over-year, reaching 2,530 homes in March 2025.
• Median sales price held steady at $324,900, virtually unchanged from Q1 2024.
• Days on market climbed to 64, a 45% increase from the previous year.
• Months of supply rose to 4.7 months, indicating a shift toward a more balanced market.
• New construction remained strong, accounting for 37% of total sales.

For more news on what’s happening in and around Huntsville, follow Hville Blast on Facebook, TikTok and Instagram, and be sure to subscribe to our newsletter.