H
ome sales in the Huntsville area remained relatively flat in May, but local realtors predict a surge in activity later this year. According to Fannie Mae, interest rates are expected to rise to the high 5's by late 2026, and housing supply is rebounding, creating favorable conditions for buyers.

    Realtor Matt Curtis expects a "hot fall" with increased demand and sales, while Ben Wales of Gateway Alabama Realty Group notes that a slower spring often leads to a busy fall after schools reopen. Brianna Bond with Embry Group has seen an uptick in inquiries about getting preapproved, indicating potential buyers are preparing for the market.

    The Huntsville area saw 743 homes sold last month, up from April but down slightly from May 2024. The median sales price was $338,000, a decrease of $2,000 from the previous year. Inventory levels have increased, with 2,740 homes available in Huntsville, up 22% from last year.

    Realtor Curtis emphasizes that inventory growth is the key story, with supply up 18.9% year-over-year. However, declining interest rates may reignite demand before a potential shift to a buyer's market. Bennie Waller expects stable markets with increasing inventories and longer marketing durations.

    In Athens, home sales declined by four from last year, while Decatur saw an increase in sales to 150 homes. Marshall County experienced lower numbers, with a median sales price drop of $30,000 from May 2024.