New home sales in Alabama increased 0.4% year-over-year from 905 to 909 closed transactions. Following seasonal trends, sales increased 13.8% from August. September sales were slightly above pre-covid levels as they increased 6.1% from the five-year average.
Inventory: New home listings (3,391) increased 10.3% from August but decreased 2.5% from one year ago. The number of new home listings in September is well above pre-covid levels (26.5% above the 5-year average).
At the current sales pace, all the active inventory on the market would sell in 3.7 months, down from 3.8 in August and equal to September 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 September was $314,321, a decrease of 0.3% from August and 11.5% from one year ago, marking four consecutive months of Y/Y price declines in the new construction market.
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 September averaged 56 days on the market (DOM), 17 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 759,000 in September. This represents a 12.3% increase from the revised August rate of 676,000 and is 33.9% above the September 2022 estimate of 567,000.
The median sales price for new homes ($418,800) decreased 3.3% from August and 12.3% from September 2022.
Supply of new homes was estimated at 441,000 listings (seasonally adjusted) in September, an increase of 0.5% from the prior month but a 6.4% decrease from one year ago. Months of supply decreased from 10.7 one year ago to 7.3 in September 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.
