Prospective Madison County homebuyers may have a lot of options from which to choose as the summer draws to a close, but rising mortgage rates could make some potential buyers nervous in the midst of continued inflation.

According to the Huntsville Area Association of Realtors’ (HAAR) Weekly Market Activity Report dated for the week ending Sept. 19, 2026, new listings of single-family homes increased to 170 locally, bringing the inventory to 2,266. Townhouse and condo inventory in Madison County increased to 198, despite new listings of these home types dropping to 11.

In September, the average 30-year fixed mortgage rate rose above 7% for the first time since Janaury 2025. Freddie Mac reports that 30-year fixed-rate mortgages in the U.S. averaged 7.03% as of Sept. 24 – up from 6.95% a week earlier and up from 6.30% a year earlier. And rates continue to rise; on Oct. 1, the average rate for a 30-year fixed mortgage in the U.S. jumped to 7.28%.

Haleigh Lehofer, The Nerdy Realtor, is an associate broker with Weichert, Realtors – The Space Place in Huntsville. “Many buyers can feel some hesitation to purchase with higher interest rates,” she explains. “However, when we do see the rates come back down, all of those other buyers who were waiting for a rate drop come back to the market.

“When this happens with a sudden increase of new purchasers, we see a rise in demand which can result in multiple offers and contracts going above asking price. There are many tactics there to help navigate interest rates and closing costs for a buyer. It’s all about having a great loan officer and realtor to help educate you on the process.”

In August, the median sales price for single-family homes in Madison County rose 4.4% to $346,835, and the median sales price for townhouses and condos rose 16% to $290,000, according to the HAAR report.

Nationwide, spring and summer generally tend to be more active for home sales than fall and winter, but Lehofer says this isn’t necessarily the case locally.

“Huntsville and the greater North Alabama area does not follow your typical trend like the rest of the country,” she says. “While spring and summer do tend to be busier traditionally, we do not see a sudden drop off in activity in the fall and winter here. With the growth of many businesses moving into our area, the need for housing options will still continue to be higher than other parts of the country.”

Year over year, the number of new listings for single-family homes in Madison County is up 1.8%, while new listings for townhouses and condos dropped 21.4%. Pending townhouse and condo sales dropped 69.2% locally year over year but remain fairly steady for single-family homes, with only a 0.9% drop. The number of homes for sale in the area is up year over year, with a 9.5% increase in available single-family homes and a 15.1% increase in available townhouses and condos.

Huntsville continues to see growth, not only in population but also in physical space. During its Sept. 24 regular meeting, the Huntsville City Council voted to annex 236.58 acres of land in Limestone County known as LeCriox Farms, which sits west of Greenbrier Parkway and south of Huntsville Brownsferry Road. The city says construction of single-family homes is planned for the site.