Top 5 Markets for New Construction in July

The Alabama Center for Real Estate created the following rankings based on new construction as a percentage of total residential sales during July.

1.      Athens: 32.7 percent

2.      Lee County: 28.6 percent

3.      Huntsville: 22.2 percent

4.      Baldwin County: 19.5 percent

5.      Birmingham: 10.9 percent

July New Construction Recap

Statewide: Sales volume for newly constructed residential housing in Alabama increased 11.9 percent YoY from 620 to 694 transactions. Year-to-date sales reached a total of 4,626 closed transactions, an increase of 13.8 percent from one year ago. The median sales price increased 4.6 percent YoY from $230,297 to $240,872. The year-to-date median sales price for new construction increased 2.1 percent from $229,913 to $234,627. Inventory decreased 1.1 percent from 2,950 new construction listings one year ago to 2,919 in July. Months of supply declined from 4.8 to 4.2, and average days on market declined from 123 to 91. New construction represented 12.1 percent of all residential transactions statewide during July, up from 11.6 percent one year ago.

Although new construction sales remained robust in July, inventory growth is starting to flatten out. Low inventory in residential markets across Alabama and the United States has been the topic of many headlines during the spring and summer buying season. Alabama’s new construction market, however, went against this trend by posting significant inventory gains throughout the first half of the year. Through July, the state’s new construction market has averaged 2,963 listings, up 8.9 percent from the same stretch in 2017 which averaged 2,722 listings. For comparison’s sake, statewide residential inventory (existing homes, condominiums, and new construction) is down 9.2 percent from one year ago. However, the 1.1 percent drop in new construction inventory is the first year-over-decline in new since August 2017 and only the fourth since December 2015. Building permit data for July will be released Thursday, August 23 so stay tuned for a glimpse into what lies ahead for Alabama’s new construction market.

Athens: Sales volume for newly constructed residential housing in the Athens area increased 20.9 percent YoY from 43 to 52 transactions. Year-to-date sales reached a total of 361 closed transactions, an increase of 19.1 percent from one year ago. The median sales price decreased 5.8 percent YoY from $263,000 to $267,098. The year-to-date median sales price for new construction decreased 0.6 percent from $248,528 to $247,073. Inventory decreased 0.6 percent from 168 new construction listings one year ago to 167 in July. Months of supply decreased from 3.9 to 3.2, and average days on market decreased from 49 to 36. New construction represented 32.7 percent of all residential transactions in the area during July, up from 25.1 percent one year ago.

Baldwin County: Sales volume for newly constructed residential housing in Baldwin County increased 18.9 percent YoY from 106 to 126 transactions. Year-to-date sales reached a total of 900 closed transactions, an increase of 49.8 percent from one year ago. The median sales price increased 7.8 percent YoY from $244,115 to $263,060. The year-to-date median sales price for new construction increased 1.2 percent from $250,548 to $253,423. Inventory increased 6.8 percent from 546 new construction listings one year ago to 583 in July. Months of supply declined from 5.2 to 4.6, and average days on market declined from 177 to 122. New construction represented 19.5 percent of all residential transactions in the area during July, up from 15.3 percent one year ago.

Baldwin County leads the state in new construction sales growth. Sales are up 49.8 percent year-to-date through July. Statewide, new construction sales are up 13.8 percent YTD.

Birmingham: Sales volume for newly constructed residential housing in the Birmingham metro area increased 26.6 percent YoY from 124 to 157 transactions. Year-to-date sales reached a total of 1,051 closed transactions, an increase of 10.9 percent from one year ago. The median sales price increased 1.6 percent YoY from $269,265 to $273,500. The year-to-date median sales price for new construction increased 4.6 percent from $260,129 to $272,195. Inventory decreased 7.5 percent from 941 new construction listings one year ago to 870 in July. Months of supply declined from 7.6 to 5.5. New construction represented 10.9 percent of all residential transactions in the area during July, up from 9.1 percent one year ago.

Huntsville: Sales volume for newly constructed residential housing in the Huntsville metro area increased 6.4 percent YoY from 157 to 167 transactions. Year-to-date sales reached a total of 1,045 closed transactions, an increase of 5 percent from one year ago. The median sales price increased 8.1 percent YoY from $250,580 to $270,886. The year-to-date median sales price for new construction increased 1.3 percent from $258,991 to $262,389. Inventory decreased 2.3 percent from 517 new construction listings one year ago to 505 in July. Months of supply decreased from 3.3 to 3.0, and average days on market decreased from 69 to 43. New construction represented 22.2 percent of all residential transactions in the area during July, down from 24.9 percent one year ago.

Lee County: Sales volume for newly constructed residential housing in Lee County increased 10.4 percent YoY from 48 to 53 transactions. Year-to-date sales reached a total of 349 closed transactions, an increase of 16.3 percent from one year ago. The median sales price increased 21.4 percent YoY from $257,996 to $313,290. The year-to-date median sales price for new construction increased 9.4 percent from $279,030 to $305,252. Inventory increased 25.6 percent from 203 new construction listings one year ago to 255 in July. Months of supply increased from 4.2 to 4.8, and average days on market increased from 79 to 103. New construction represented 28.6 percent of all residential transactions in the area during July, up from 23 percent one year ago.

Lee County leads the state in new construction median price appreciation. Prices are up 9.4 percent year-to-date through July. Statewide, new construction prices are up 2.1 percent YTD.

Mobile: Sales volume for newly constructed residential housing in Mobile increased 5.9 percent YoY from 34 to 36 transactions. Year-to-date sales reached a total of 204 closed transactions, an increase of 3 percent from one year ago. The median sales price decreased 18 percent YoY from $201,175 to $165,000. The year-to-date median sales price for new construction decreased 1.9 percent from $214,589 to $210,550. Inventory decreased 19.5 percent from 123 new construction listings one year ago to 99 in July. Months of supply decreased from 3.6 to 2.8, and average days on market increased from 123 to 160. New construction represented 8.4 percent of all residential transactions in the area during July, up from 8.3 percent one year ago.

Montgomery: Sales volume for newly constructed residential housing in Montgomery was equal to July 2017’s total of 47 closed transactions. Year-to-date sales reached a total of 343 closed transactions, a decrease of 4.2 percent from one year ago. The median sales price increased 2.5 percent YoY from $248,200 to $254,443. The year-to-date median sales price for new construction decreased 1.1 percent from $247,877 to $245,207. Inventory decreased 25 percent from 196 new construction listings one year ago to 147 in July. Months of supply decreased from 4.2 to 3.1, and average days on market decreased from 151 to 73. New construction represented 10.4 percent of all residential transactions in the area during July, down from 11.9 percent one year ago.

Tuscaloosa: Sales volume for newly constructed residential housing in Tuscaloosa decreased 13.8 percent YoY from 29 to 25 transactions. Year-to-date sales reached a total of 176 closed transactions, an increase of 15.8 percent from one year ago. The median sales price increased 15 percent YoY from $260,000 to $298,900. The year-to-date median sales price for new construction increased 2.4 percent from $232,474 to $238,071. Inventory increased 29.2 percent from 106 new construction listings one year ago to 137 in July. Months of supply increased from 3.7 to 5.5, and average days on market decreased from 137 to 79. New construction represented 10 percent of all residential transactions in the area during July, down from 11.6 percent one year ago.

New Construction Sales Summary: Year-to-Date through July