New home sales in Alabama increased 11.0% year-over-year from 720 to 799 closed transactions. Following seasonal trends, sales increased 4.2% from July. August sales were slightly above pre-covid levels, increasing 1.6% from the five-year average.
Inventory: New home listings (3,073) increased 0.5% from July and 12.9% from one year ago. The number of new home listings in August is well above pre-covid levels (25% above the 5-year average).
At the current sales pace, all the active inventory on the market would sell in 3.8 months, down from 3.8 in July and equal to August 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 August was $315,394, a decrease of 0.6% from July and 4.8% from one year ago, marking three 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 August averaged 59 days on the market (DOM), 22 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 675,000 in August. This represents an 8.7% decrease from the revised July rate of 739,000 but is 5.8% above the August 2022 level of 638,000.
The median sales price for new homes ($430,300) decreased 1.4% from July and 2.3% from August 2022.
Supply of new homes was estimated at 436,000 listings (seasonally adjusted) in August, an increase of 1.2% from the prior month but a 5.2% decrease from one year ago. Months of supply decreased from 8.7 one year ago to 7.8 in August 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.