Buyers and Sellers in Huntsville, AL: August 2026 New Construction Update

Buyers and sellers in Huntsville, AL can learn more from a new-construction closing than the advertised price alone. In August 2026, 159 of 205 qualifying new-construction closings in Madison County—77.6%—reported a seller concession in the MLS. Where a concession was reported, the median amount was $10,000.

That does not mean every incentive worked the same way. Concessions can affect closing costs and other parts of a transaction, while rate buydowns and upgrades may not be fully visible in the MLS. The broader point is that comparing new homes by sticker price alone can leave out important details.

August 2026 new-construction market snapshot

The Madison County new-construction data included 205 qualifying closings during August:

• Average sold price: $397,539
• Median sold price: $349,403
• Sold-price range: $229,900 to $995,000
• Total sales volume: $81.5 million
• Detached homes: 195
• Townhomes: 10

The gap between the average and median sold prices was nearly $50,000. Higher-priced closings pulled the average upward, so the median provides another useful way to understand where the middle of August’s closings landed.

Neither number should be used by itself to evaluate a particular home. Property type, location, lot, finishes, upgrades and other features can all affect the final price.

Where new homes closed

Five MLS mailing areas accounted for 77.1% of the qualifying closings:

• Huntsville: 65 closings
• Owens Cross Roads: 25 closings
• Harvest: 23 closings
• Madison: 23 closings
• Meridianville: 22 closings

These are MLS mailing areas and do not necessarily match municipal boundaries. That distinction matters when reviewing search results or comparing homes marketed under a particular city name.

Average sold prices also varied by mailing area:

• Madison: $470,973
• Owens Cross Roads: $402,457
• Huntsville: $400,255
• Meridianville: $390,773
• Harvest: $353,034
• New Market: $350,045
• Hazel Green: $295,773

These figures show why “new construction” is not one uniform price category. The home, lot and location still need to be considered when comparing one option with another.

Most closings were between $200,000 and $400,000

Of the 205 qualifying closings, 136—or 66.3%—had sold prices between $200,000 and $400,000.

The full price distribution was:

• $200,000 to $300,000: 56 closings
• $300,000 to $400,000: 80 closings
• $400,000 to $500,000: 34 closings
• $500,000 to $600,000: 15 closings
• $600,000 and above: 20 closings

In other words, roughly two out of every three qualifying new-construction homes that closed during August sold below $400,000. This describes closed sales for the month, not every available home or future contract.

Builder activity in the August closings

The five builders with the most qualifying MLS closings were:

1. D.R. Horton: 36
2. Davidson Homes: 28
3. Breland Homes: 20
4. Lennar: 18
5. Smith Douglas: 14

Together, those builders represented 56.6% of August’s new-construction closings in the data.

This is a count of MLS closings for one month. It does not measure contracts written, current inventory, overall market share or builder quality.

Builders also were not necessarily competing at the same average price. Among builders with at least five closings, the reported averages included:

• Woodland Homes: $694,765
• Stone Martin: $488,209
• Legacy: $420,959
• Breland: $393,156
• Davidson: $351,900
• D.R. Horton: $328,937
• Lennar: $311,993
• Smith Douglas: $291,876

A higher average does not mean a builder is “better.” Builders may be offering different home sizes, lots, finishes, locations and communities. Those differences need to be evaluated before drawing conclusions from an average sold price.

Why reported seller concessions matter

A seller concession was reported in 159 of the 205 closings, or 77.6%. The median reported concession among those closings was $10,000.

The closed price therefore may not reveal the full economics of the purchase. Depending on the transaction, incentives can affect closing costs and other expenses. Rate buydowns and upgrades may not be fully reflected in MLS data either.

When I help someone compare new-construction options, I want to look beyond the base price and ask what is included, what costs extra and what incentives may offset some expenses. Two homes with similar advertised prices can have different total costs after lot premiums, upgrades, homeowners association costs and concessions are considered.

What buyers and sellers in Huntsville, AL should ask

Before choosing a new-construction home, consider these questions:

• What is the true total cost? Add the base price, lot premium, upgrades and applicable HOA costs, then account for available incentives.
• Am I comparing equivalent homes? Review size, lot, finishes and location rather than comparing prices in isolation.
• What is the construction timeline? A move-in-ready home, a home under construction and a to-be-built home can require different planning.
• Do I need to sell a home first? If so, determine how selling first or using a contingency could affect the new-construction strategy.
• What does the MLS data leave out? Ask for details about upgrades, rate buydowns and other incentives that may not be fully visible in the closing record.

For current homeowners, the sale of the existing property should be part of the plan from the beginning. That includes considering timing and how a contingency may fit with the intended purchase.

Next step: If you are considering new construction in Huntsville or Madison County, schedule a strategy session with me. We can compare builders, communities, incentives, lot premiums, upgrades and the available numbers to better understand the potential total cost. If you already own a home, we can also build its sale into the plan. Contact Justin Forehand, REALTOR® with eXp Realty, at 256-542-0226 or visit justinforehand.com.