Sales: According to the Alabama Realtors, March new home sales in the state increased 20.6% year-over-year (Y/Y) from 897 to 1,082 closed transactions, marking 21 consecutive months of Y/Y gains. The March total was the second-highest level on record, with the peak of 1,134 new home sales reached in December 2020. Following seasonal trends, sales increased 35.8% from February. New construction represented 15.4% of all residential sales in Alabama during March, down from 15.8% one year ago.
For all new construction housing data, click here.
Inventory: New homes listed for sale decreased 46.9% year-over-year from 2,782 listings one year ago to 1,476 in March, a record low. New builds represented 15% of all homes listed for sale statewide. Months of new home supply (inventory to sales ratio) tightened from 3.1 one year ago to 1.4 currently, also a record low.
Pricing: The median sales price for new construction in March was $276,583, an increase of 9.4% from one year ago and an increase of 7.7% from February. 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 March averaged 57 days on the market (DOM), 19 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 64.4% year-over-year from approximately 59,000 one year ago to 97,000 in March. Inventory continued to trend downwards as new homes listed for sale declined 6.1% Y/Y. With elevated sales activity and declining inventory, months of supply (inventory to sales ratio) tightened from 5.6 in March 2020 to 3.2 currently. The median sales price increased 0.7% Y/Y from $328,200 to $330,800.
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 March 1 – 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.
