Sales: New home sales decreased 12.3% year-over-year from 961 to 843 closed transactions. Following seasonal trends, sales increased 18.7% from April. May sales were only slightly below pre-covid levels as they decreased 0.1% from the five-year average.
Inventory: New home listings (3,049) increased 3.2% from April and increased 61.6% from one year ago. The large year-over-year increase is from a near record low of 1,915 listings in May 2022.
At the current sales pace, all the active inventory on the market would sell in 3.7 months, down from 4.2 in April but up from 2.0 in May 2022. The equilibrium point where buyers and sellers have roughly equal bargaining power is six months of supply.
Pricing: The median sales price for new construction in May was $338,818, an increase of 5.4% from April and 3.1% from one year ago. Year-over-year price growth has moderated to the single digits for the sixth 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 May averaged 70 days on the market (DOM), 38 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 763,000 in May. This represents a 12.2% increase from the revised April rate of 680,000 and is 20.0% above the May 2022 level of 636,000.
The median sales price for new homes ($416,300) increased 3.5% from April but decreased 7.6% from May 2022.
Supply of new homes was estimated at 428,000 listings (seasonally adjusted) in May, a decrease of 0.9% from the prior month and 3.0% from one year ago. Months of supply decreased from 8.3 one year ago to 6.7 in May 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.
