Sales: New home sales decreased 23.4% year-over-year from 927 to 710 closed transactions. Following seasonal trends, sales decreased 16.3% from March. Rising mortgage rates have slowed new home sales to below pre-covid levels as April sales were 13.5% below the 5-year average.
Inventory: New home listings (2,999) decreased 1.2% from March but increased 100.3% from one year ago. The large year-over-year increase is from a near record low of 1,497 listings in April 2022.
At the current sales pace, all the active inventory on the market would sell in 4.2 months, up from 3.6 in March and up from 1.6 in April 2022. 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 April was $321,569, a decrease of 1.6% from March but an increase of 0.6% from one year ago. Year-over-year price growth has moderated to the single digits for the fifth 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 April averaged 73 days on the market (DOM), 36 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 April. This represents a 4.1% increase from the revised March rate of 656,000 and is 11.8% above the April 2022 level of 611,000.
The median sales price for new homes ($420,800) decreased 7.7% from March and 8.2% from April 2022.
Supply of new homes was estimated at 433,000 listings (seasonally adjusted) in April, an increase of 0.2% from the prior month but a decrease of 0.2% from one year ago. Months of supply decreased from 8.5 one year ago to 7.6 in April 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.
