Sales: According to the Alabama Realtors, November new home sales in the state increased 19.8% year-over-year (Y/Y) from 713 to 854 closed transactions, marking 17 consecutive months of Y/Y gains. Following seasonal trends, sales decreased 6.8% from October. New home sales are now up 22% year-to-date. Additionally, new home sales represented 14.9% of all residential sales in Alabama during November, down from 15.4% one year ago.
For all new construction housing data, click here.
Inventory: New homes listed for sale decreased 20.1% from 2,948 listings one year ago to 2,355 in November. New builds represented 17.8% of all homes listed for sale statewide. Months of new home supply (inventory to sales ratio) tightened from 4.1 one year ago to 2.8 currently.
Pricing: The median sales price for new construction in November was $267,508, an increase of 11.6% from one year ago and an increase of 2.1% from October. 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 November averaged 56 days on the market (DOM), 17 days faster than one year ago.
Monthly new construction sales data is available for the following markets: Athens, Baldwin County, Birmingham, Calhoun County, Gadsden, Huntsville, Lee County, Marshall County, Mobile, Montgomery, Morgan County, Tuscaloosa, 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 Association of Realtors.
National Overview: According to the U.S. Census Bureau, new home sales nationwide increased 20.8% year-over-year from approximately 50,000 one year ago to 59,000 in November. Inventory continued to trend downwards as new homes listed for sale declined 12.8% Y/Y. With elevated sales activity and declining inventory, months of supply (inventory to sales ratio) tightened from 6.5 in November 2019 to 4.8 currently. The median sales price increased 2.2% Y/Y from $328,000 to $335,300.
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 November 1 – 30, 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.
