Madison County’s housing market posted strong gains during the second quarter of 2026, with home sales rising more than 11% compared to the same period last year, according to a new report from the Huntsville Area Association of REALTORS®.
The quarterly report, produced in partnership with the Center for Management & Economic Research at the University of Alabama in Huntsville’s College of Business, found that 2,271 homes were sold in Madison County between April and June, an 11.3% increase over the 2,041 homes sold during the second quarter of 2025.
Sales also outpaced historical averages, finishing 8% above the three-year second-quarter average and 6.3% above the five-year average.
While activity increased, home prices continued to rise at a more moderate pace.
The median sales price reached $345,000 during the quarter, up 1.8% from $339,000 a year earlier. According to the report, local home price growth remained below the national Consumer Price Index increase of 3.5% recorded in June, signaling what officials described as healthy and sustainable appreciation.
The report also found a sharp increase in pending sales, suggesting buyer demand is expected to remain strong through the remainder of the year.
Pending sales totaled 622 at the end of the quarter, a 76.2% increase from the 353 pending listings recorded at the close of the second quarter in 2025.
“Despite ongoing affordability considerations driven by elevated mortgage rates, the Madison County market has proven remarkably resilient,” said Regina Mitchell, president of the Huntsville Area Association of REALTORS® and ValleyMLS. “Seeing home sales grow while values rise at a manageable pace is positive for both buyers and sellers. Our region’s continued economic stability and steady job expansion keep local housing demand firmly grounded.”
New construction remained a significant contributor to the local housing market, accounting for 688 home sales, or roughly 30% of all residential transactions during the quarter.
Housing inventory remained relatively stable, ending the quarter with 2,706 active listings, down 1% from the same period last year. That equates to approximately 3.4 months of housing supply.
Homes also sold slightly faster than they did a year ago, spending an average of 47 days on the market compared to 48 days during the second quarter of 2025.
The report found the $350,000 to $500,000 price range generated the highest number of sales, with 594 transactions representing 26% of the market.
Meanwhile, the luxury market experienced the fastest growth. Home sales priced above $800,000 increased 47.7% year over year, the largest percentage gain of any price category.
“The sharp rise in pending sales at the close of Q2 signals strong buyer engagement moving into the second half of the year,” said Tiffany James, CEO of the Huntsville Area Association of REALTORS® and ValleyMLS. “With inventory holding stable and new construction continuing to play a vital role in expanding housing supply, REALTORS® across North Alabama are well-positioned to guide consumers through a balanced, active market.”
The Huntsville Area Association of REALTORS® represents nearly 5,000 real estate professionals across North Alabama and partners with UAH each quarter to track residential housing trends in Madison County.
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