Concerns over potential federal job cuts may have led to a sluggish housing market in the Huntsville area in February, but sales rebounded in March, according to data from ValleyMLS.

Sales rebounded last month in most of the counties in the area to levels above those posted a year ago according to data from ValleyMLS.

See story: Huntsville housing market cooled down in February. Are federal layoffs to blame? – al.com

“Sales are up 8.7% and inventory has jumped 46.3%, signaling a healthier, more balanced market with opportunities for both buyers and sellers,” Realtor Matt Curtis told AL.com.

“March was great,” added Gateway Alabama Realty Group’s Ben Wales. “Big uptick in people shopping. Those are always exciting when all of the homes that we have been watching for a few months begin selling.”

In the Huntsville market, which includes all of Madison County, sales shot up to 608 from 528 in February and 536 in March 2024. There were 740 pending sales.

In Athens, which includes all of Limestone County, buyers purchased 187 homes, up from 165 in February and 176 in March 2024. There were 315 pending sales.

The lone exception in the Huntsville area was the Decatur (Morgan and Lawrence counties) market. Sales actually slipped from 114 a year ago to 109 in March this year. But sales did climb from 82 sold in February. There were 189 sales pending.

In Marshall County, 88 homes sold, up from 64 in February and 70 in March 2024. There were 95 sales pending.

The increase in home sales in the Huntsville area reflects a statewide trend, according to the Alabama Association of Realtors.

“The Alabama residential real estate market continues to acclimate to a more traditional mortgage rate environment, as evidenced by increasing home sales to start the year and an increasing portion of mortgage holders with rates of at least 6% over each of the last nine quarters,” said David Hughes, economist at Alabama REALTORS®. “Despite broader national economic uncertainties, specific indicators within Alabama suggest a strengthening housing market that is poised for growth.”

Sales prices steady

The median sales price remained steady year-over-year in the area.

The median sales price in Huntsville last month was $327,000, up from $318,000 the previous month and $320,000 in March 2024. In Athens, the sales price dropped dramatically from $375,000 in February to $310,000 last month. But it was more in line with March 2024, when the median sales price was $319,000.

In Decatur, the median sales price was $255,000 last month, down from $267,000 in February, but up from $243,000 the previous year. In Marshall County, the median sales price was $288,000, up from $254,000 in February and $274,000 in March 2024.

“Prices are holding steady with modest gains—great news for buyers building equity and sellers seeking strong value,” Curtis said.

Wales said the trend reflected a lot of first-time buyers jumping in when rates dipped a little.

Homes are more expensive in the Huntsville area, including the Decatur market, which is normally the cheapest, than the rest of the state. The median sales price statewide is $211,000.

Inventory, days on market rise

The inventory of available homes continues to climb, as does how long they stay on the market.

In the Huntsville market there were 2,530 homes on the market, compared to 1,814 a year ago. They stayed on the market an average of 58 days, up from 46 in March 2024.

In Athens there were 951 homes on the market, up from 725 a year ago. Homes stayed on the market for an average of 63 days, up from 41 in March 2024. In Decatur there were 529 homes on the market, up from 307 a year ago. Homes stayed on the market 56 days, up from 49 in 2024.

In Marshall County there were 405 available homes, up from 244 a year ago. Homes stayed on the market for an average of 84 days, up from 45 last year.

“The number of days on market is close to where it was pre pandemic,” Wales said.” I like that because it gives buyers a little bit more time to breathe when shopping and I don’t have to be this raving lunatic rushing people into writing an offer or they’ll lose out. I have always said that the more buyer friendly the market is the better for all of us.”

Curtis agrees.

“We’re starting to see a shift,” he said. “Multiple offers and full-price contracts are returning for the most desirable homes across every price point.”