New home sales in Alabama decreased 1.8% year-over-year from 680 to 668 closed transactions. Following seasonal trends, sales decreased 26.6% from September. October sales were below pre-covid levels as they decreased 11.0% from the five-year average.
Inventory: New home listings (3,518) increased 3.7% from September and 8.0% from one year ago. The number of new home listings in October is well above pre-covid levels (33.5% above the 5-year average).
At the current sales pace, all the active inventory on the market would sell in 5.3 months, up from 3.7 in September and up from 4.8 in October 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 October was $322,804, an increase of 2.7% from September but a decrease of 4.7% from one year ago, marking five 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 October averaged 57 days on the market (DOM), 15 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 679,000 in October. This represents a 5.6% decrease from the revised September rate of 719,000 but is 17.7% above the October 2022 estimate of 577,000.
The median sales price for new homes ($409,300) decreased 3.1% from September and 17.6% from October 2022.
Supply of new homes was estimated at 449,000 listings (seasonally adjusted) in October, an increase of 2.8% from September but a 4.9% decrease from one year ago. Months of supply decreased from 10.9 one year ago to 8.8 in October 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.
