Madison, AL Housing Market Prices, Trends, & Forecasts 2023

Madison, AL Housing Market Prices, Trends, & Forecasts 2023

Madison is one of the fastest-growing, most in-demand markets in Alabama. Residents value the high quality of life, plentiful employment opportunities, and excellent public schools in the Madison area. With its quick commute to nearby Huntsville, the Madison real estate market is one of the most vibrant in the region.

Madison Housing Market Forecast 2023

The Madison, AL, real estate market has maintained its competitive status in the first quarters of 2023. As the Madison market supply keeps pace with demand, home values and overall migratory factors also continue to rise. Here is a look at some factors in the Madison housing market moving through 2023:

Home value increasing

Median home prices in Madison are trending upward, as they have since the end of the Great Recession in 2012. Median home prices have risen 66% since 2012 and 16% since 2021.

Rising interest rates

Interest rates nationwide will continue to fluctuate as the Federal Reserve tackles inflation.

Investing indicators will favor landlords

As interest rates continue to rise, residents will be renting longer before they buy their first home. Thus, the Madison real estate market will favor landlords, which makes it a good time to pursue investing in rental properties.

Positive net population migration

The greater Madison area has seen continued population growth, and that trend looks like it will continue for the entirety of 2023 and beyond.

Madison County Housing Market Trends 2023

Madison County has experienced a rise in higher-priced homes. Inventory of Madison County homes under $300,000 has dropped by 64%. And the beginning of this year saw a dramatic increase in overall new home supply, nearly tripling over the market supply at the same time the previous year.

However, homes for sale in Madison are staying on the market longer. As of February 2023, homes were on the market for an average of 36 days versus 11 days the previous year. This is likely due to rising interest rates that plagued buyers during much of 2022, as would-be buyers are wary of taking on a high-interest mortgage, and potential sellers want to hold on to their lower-rate mortgage payments.

Madison Foreclosure Statistics 2023

Madison remains somewhat protected from the rise in foreclosures across the country. RealtyTrac, a foremost market data collection and distribution organization, published low foreclosure and distressed property statistics for the Madison market for the first quarter of 2023.

ATTOM, a leader in real estate data collection, has tracked foreclosure activity nationwide. Across the country, February 2023 saw foreclosure activity increase by 18% since February 2022. As of the first quarter, there were 11 homes in distress, foreclosure, or auction status in the Madison market area, representing 17.7% of actively listed homes.

Madison Median Home Prices 2023

The Madison real estate market has kept pace with national markets, showing an upward trend through the first quarter of this year. Despite an initial slowdown in March 2020 with the onslaught of the COVID-19 pandemic and the temporary cessation of real estate transactions, the Madison housing market rebounded quickly, and home prices have continued to rise throughout the region.

Since 2012, the median home price in Madison has risen 66% and has grown by 16% since 2021. The Federal Housing Finance Agency (FHFA) has tracked the upward movement of the Housing Price Index (HPI) for the greater Madison market. The HPI measures a wide breadth of housing price factors and predicts favorable growth in the Madison housing market through 2023.

As the supply of homes for sale in Madison, AL, starts to keep pace with demand, median prices in the Madison real estate market will still continue to increase through 2023. According to RealtyTrac, a leading real estate data company, the median home value in Madison is $389,938.

Madison Real Estate Market: Should you invest?

Madison is one of the most desirable markets in the region thanks to its high quality of life, excellent local schools, and top-notch technology employers.

However, rising interest rates have signaled a trend toward renting for many Madison residents. Buyers looking for a long-term strategy as they look at the Madison real estate market in 2023 should keep an eye on purchasing homes as a rental option.

A look at some of the hottest concentrated markets in Madison helps create a clearer picture for investors. Each presents unique features to draw in buyers as permanent residents or to look at the property for rental value.

Clift’s Cove

Clift’s Cove is a master-planned community in Madison with estate lots surrounded by the tranquil forests of the Rainbow Mountain Nature Preserve. This gorgeous neighborhood keeps residents close to all the nearby amenities while maintaining a private atmosphere.

Dublin Farms

The Craftsman-style homes in this Madison neighborhood are full of character. This newer subdivision is ideally located near plenty of parks and outdoor recreation spots. And Dublin Farms residents enjoy access to the top-notch Madison schools.

Town Madison

This unique, walkable urban community within Madison aims to give residents easy access to spaces for living, working, dining, shopping, and recreation. The stunning homes in Town Madison range from single-family homes to townhomes and more.


Bridgemill is the perfect combination of tranquility and luxury. The homes in this neighborhood are built with various floorplans, making them perfect for a range of owners. Bridgemill is ideally located near dining, shopping, and entertainment spots in Madison.

The Village at Oakland Springs

Homes in The Village at Oakland Springs are built in a classic Southern style, giving its tree-lined streets a charming feel. And families will love the lakeside pool and tot lots for residents.

Continued Growth in the Madison Real Estate Market

This regional real estate market continues to thrive, seeing booming population growth and steady home prices in Madison. Named one of the Top 10 Real Estate Markets to Watch by the National Association of Realtors, the Madison real estate market is forecasted to remain strong through 2023.

As a realtor with experience in the Madison market, Kristin Bridges is highly qualified to navigate the evolving Madison real estate market. A solid economic outlook in the technology sector, a highly rated public school system, and a high quality of life index forecast ongoing strength for Madison real estate for 2023.

Work With Kristin

Helping my clients navigate the buying and selling process with the least amount of stress possible is my goal. I recognize the value and trust my clients place in me, and I strive every day to exceed their expectations as their Realtor®.

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