Sales: Following seasonal trends, new home sales in March (848 closed transactions) increased 51.2% from February but declined 19.2% from one year ago, the smallest year-over-year decline since November 2022. Rising mortgage rates have slowed new home sales to below pre-covid levels as March sales were 5.1% below the 5-year average.
Inventory: New home listings (3,034) decreased 2.8% from February but increased 173.1% from one year ago. The large year-over-year increase is from a near record low of 1,111 listings in March 2022.
At the current sales pace, all the active inventory on the market would sell in 3.6 months, down from 5.6 in February but up from 1.1 in March 2022. The equilibrium point where buyers and sellers have roughly equal bargaining power is 4-5 months of supply.
Pricing: The median sales price for new construction in March was $326,717, a decrease of 2.0% from February but an increase of 3.4% from one year ago. Year-over-year price growth has moderated to the single digits for the fourth consecutive month, while it was in the double digits from July 2021 to November 2022 when it averaged 16.3%.
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 69 days on the market (DOM), 30 days slower 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 683,000 in March. This represents a 9.6% increase from the revised February rate of 623,000 but is 3.4% below the March 2022 level of 707,000.
The median sales price for new homes ($449,800) increased 3.8% from February and 3.2% from March 2022.
Supply of new homes was estimated at 432,000 listings (seasonally adjusted) in March, a decrease of 0.5% from the prior month but an increase of 5.1% from one year ago. Months of supply also increased from 7.0 one year ago to 7.6 in March 2023.
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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.
Additional Resources: Database of building permits and housing starts for all Alabama Counties and metro areas.
