Sales: According to the Alabama Realtors, February new home sales in the state increased 20% year-over-year (Y/Y) from 664 to 797 closed transactions, marking 20 consecutive months of Y/Y gains. Following seasonal trends, sales increased 6.6% from January. New construction represented 15.3% of all residential sales in Alabama during February, up from 14.6% one year ago.
For all new construction housing data, click here.
Inventory: New homes listed for sale decreased 36.5% year-over-year from 2,592 listings one year ago to 1,645 in February. New builds represented 17% of all homes listed for sale statewide. Months of new home supply (inventory to sales ratio) tightened from 3.9 one year ago to 2.1 currently.
Pricing: The median sales price for new construction in February was $256,893, an increase of 3.8% from one year ago and a decrease of 4.4% from January. 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 February averaged 46 days on the market (DOM), 43 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 15.9% year-over-year from approximately 63,000 one year ago to 73,000 in February. Inventory continued to trend downwards as new homes listed for sale declined 7.4% Y/Y. With elevated sales activity and declining inventory, months of supply (inventory to sales ratio) tightened from 5.1 in February 2020 to 4.8 currently. The median sales price increased 5.3% Y/Y from $331,800 to $349,400.
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 February 1 – 28, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.