Sales: According to the Alabama Realtors, new home sales in June decreased 6.3% year-over-year (Y/Y) from 1,070 to 1,003 closed transactions, ending 23 consecutive months of Y/Y gains. Following seasonal trends, sales increased 16.5% from May. New construction represented 12.2% of all residential sales in Alabama during June, down from 14.9% one year ago.
For all new construction housing data, click here.
Inventory: New homes listed for sale decreased 58.9% year-over-year from 2,709 listings one year ago to 1,113 in June. New builds represented 11% of all homes listed for sale statewide. Months of new home supply (inventory to sales ratio) tightened from 2.5 one year ago to 1.1 in June, a record low.
Pricing: The median sales price for new construction in June was $268,341, an increase of 7.6% from one year ago and a decrease of 7% from May. 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 June averaged 37 days on the market (DOM), a record low and 26 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) decreased 24.1% year-over-year from approximately 79,000 one year ago to 60,000 in June. Going against trends in the resale market, new home inventory increased 19.7% Y/Y. With slowing sales and rising inventory, months of supply (inventory to sales ratio) increased from 3.8 in June 2020 to 5.9 in June 2021.
The median sales price for new homes increased 6.1% Y/Y from $341,100 to $361,800.
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 June 1 – 30, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.