New home sales decreased 4.7% year-over-year from 1,003 to 956 closed transactions. Following seasonal trends, sales increased 13.4% from May. June sales were above pre-covid levels as they increased 1.4% from the five-year average.
Inventory: New home listings (3,186) increased 3.0% from May and increased 43.8% from one year ago. The 2023 numbers mark a 1,271 increase in inventory from last year, matching the inventory of new homes in December 2018.
At the current sales pace, all the active inventory on the market would sell in 3.3 months, down from 3.7 in May but up from 2.2 in June 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 June was $323,987, a decrease of 4.4% from May and 6.0% from one year ago. For the first time since May 2018, listing prices went down more than 5.0%, ending a six-month period where year-over-year prices increased.
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 June averaged 79 days on the market (DOM), 37 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 697,000 in June. This represents a 2.5% decrease from the revised May rate of 715,000 and is 23.8% above the June 2022 level of 563,000.
The median sales price for new homes ($415,400) increased 3.5% from May but decreased 7.6% from June 2022.
Supply of new homes was estimated at 428,000 listings (seasonally adjusted) in June, an increase of 7.4% from the prior month but 22.1% decrease from one year ago. Months of supply decreased from 9.5 one year ago to 7.4 in June 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.
