New construction update: August 2020

Sales: According to the Alabama Realtors, August new home sales in the state increased 19.8% year-over-year from 751 to 900 closed transactions. Sales decreased 14% from July, and are now up 20.9% year-to-date. Additionally, new home sales represented 13.1% of all residential sales in Alabama during August, up from 11.9% one year ago. As the COVID-19 pandemic continues to unfold, however, declining sales activity in Alabama’s new construction market remains a possibility in the months ahead.

For all new construction housing data, click here.

Inventory: New homes listed for sale decreased 12.3% from 2,836 listings one year ago to 2,227 in August. New builds represented 15% of all homes listed for sale statewide. Months of new home supply (inventory to sales ratio) tightened from 3.8 one year ago to 2.5 currently.

Pricing: The median sales price for new construction in August was $269,685, an increase of 7.3% from one year ago and an increase of 7.9% from July. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

New homes sold in August averaged 68 days on the market (DOM), 18 days faster than one year ago.

Monthly new construction sales data is available for the following markets: AthensBaldwin CountyBirminghamCalhoun CountyGadsdenHuntsvilleLee CountyMarshall CountyMobileMontgomeryMorgan CountyTuscaloosa, and the Wiregrass region.

Click here to view the entire monthly report.

The Alabama New Construction Monthly Report is developed in connection with the Alabama Realtors.

Additional Resources: Database of building permits and housing starts for all Alabama Counties and MSAs.

Editor’s Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period August 1 – 31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.

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