Alabama’s new home sales fall below pre-Covid levels in July

New home sales decreased 9.3% year-over-year from 846 to 767 closed transactions. Following seasonal trends, sales decreased 19.8% from June. July sales were below pre-covid levels as they decreased 9.0% from the five-year average. 

Inventory: New home listings (3,057) decreased 4.0% from June and increased 16.1% from one year ago. The number of new home listings in June is roughly equal to pre-covid levels (2,843 listings in June 2019).

At the current sales pace, all the active inventory on the market would sell in 4.0 months, up from 3.3 in June and from 3.1 in July 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 July was $317,377, a decrease of 2.0% from June and 8.9% from one year ago, marking 2 consecutive months of Y/Y price declines. 

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 July averaged 56 days on the market (DOM), 28 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 714,000 in July. This represents a 4.4% increase from the revised June rate of 684,000 and is 31.5% above the July 2022 level of 543,000. 

The median sales price for new homes ($436,700) increased 4.8% from June but decreased 8.7% from July 2022. 

Supply of new homes was estimated at 436,000 listings (seasonally adjusted) in July, an  increase of 0.9% from the prior month but a 5.4% decrease from one year ago. Months of supply decreased from 10.4 one year ago to 7.4 in July 2023. 

Click here to view the entire monthly report.

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.