Sales: According to the Alabama Realtors, new home sales in November decreased 9.6% year-over-year (Y/Y) from 858 to 784 closed transactions, the sixth consecutive Y/Y decline. New home sales in the second half of 2020, however, were significantly elevated due to shifting consumer preferences amid the pandemic. Following seasonal trends, sales decreased 7.0% from October. New home sales are up 1.1% year to date. New homes represented 12.7% of all residential sales in Alabama during November, up from 14.9% one year ago.
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Inventory: New homes listed for sale decreased 29.5% year-over-year from 2,355 listings one year ago to 1,661 in November. New builds represented 16.7% of all homes listed for sale in the state.
At the current sales pace, all the active inventory on the market would sell in 2.1 months, up from 2.0 months in October and down from 2.8 months in November 2020. The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply.
Pricing: The median sales price for new construction in November was $309,301, an increase of 15.6% from one year ago and an increase of 5.1% 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 27 days on the market (DOM), 29 days faster than one year ago.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 744,000 in November. This represents a 12.4% increase from the revised October rate of 662,000 but is 14.0% below the November 2020 estimate of 865,000
The median sales price for new homes increased 18.8% Y/Y from $350,800 to $416,900.
Supply of new homes was estimated at 402,000 (seasonally adjusted) in November. Months of supply increased from 4.0 one year ago to 6.5 in November 2021.
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Monthly New Home Sales Data: Athens, Baldwin County, Birmingham, Calhoun County, Gadsden, Huntsville, Lee County, Marshall County, Mobile, Montgomery, Morgan County, Tuscaloosa, and the Wiregrass region.
The Alabama New Construction Monthly Report is developed in connection with the Alabama Association of Realtors.
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, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.