Sales: According to the Alabama Realtors, new home sales in March decreased 4.8% year-over-year (Y/Y) from 1,082 to 1,030 closed transactions. Following seasonal trends, sales increased 25.5% from February. New homes represented 14.8% of all residential sales in Alabama during March, down from 15.4% one year ago.
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Inventory: New homes listed for sale decreased 27.2% year-over-year from 1,476 listings one year ago to 1,074 in March. New builds represented 13.6% of all homes listed for sale in the state.
At the current sales pace, all the active new home inventory on the market would sell in 1.0 months, down from 1.3 months in February and down from 1.4 months in March 2021. 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 March was $318,455, an increase of 15.1% from one year ago and an increase of 1.1% 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 39 days on the market (DOM), 18 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 763,000 in March. This represents a 8.6% decrease from the revised February rate of 835,000 and is 12.6% below the March 2021 estimate of 873,000
The median sales price for new homes increased 21.4% Y/Y from $359,600 to $436,700.
Supply of new homes was estimated at 407,000 listings (seasonally adjusted) in March, an increase of 3.8% from the prior month and an increase of 33.4% from one year ago. Months of supply also increased from 3.7 one year ago to 5.7 in March 2022.
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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.
