Sales: According to the Alabama Realtors, May new home sales in the state increased 1.1% year-over-year (Y/Y) from 852 to 861 closed transactions, marking 23 consecutive months of Y/Y gains. Going against seasonal trends, sales decreased 11.9% from April. New construction represented 12.4% of all residential sales in Alabama during May, down from 15.7% one year ago.
For all new construction housing data, click here.
Inventory: New homes listed for sale decreased 57.3% year-over-year from 2,759 listings one year ago to 1,177 in May. New builds represented 12.6% of all homes listed for sale statewide. Months of new home supply (inventory to sales ratio) tightened from 3.2 one year ago to 1.4 currently, also a record low.
Pricing: The median sales price for new construction in May was $288,683, a record high and an increase of 14.5% from one year ago and 1.6% from April. 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 May averaged 47 days on the market (DOM), 15 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 (not seasonally adjusted) increased 7.8% year-over-year from approximately 64,000 one year ago to 69,000 in May. Going against trends in the resale market, new home inventory increased 7.1% Y/Y. With a slight increase in sales and inventory, months of supply (inventory to sales ratio) was unchanged from one year ago (4.8 currently). The median sales price increased 18.07% Y/Y from $317,100 to $374,400.
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 May 1 – 31, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.