New home sales in Alabama increased 14.4% year-over-year from 766 to 876 closed transactions. Following seasonal trends, sales increased 29.0% from November. December sales were below pre-covid levels as they decreased 4.0% from the five-year average.
Inventory: New home listings (3,564) increased 0.3% from November and 10.7% from one year ago. The number of new home listings in December was well above pre-covid levels (36.6% above the 5-year average).
At the current sales pace, all the active inventory on the market would sell in 4.1 months, down from 5.2 in November and 4.2 in December 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 December was $313,052, an increase of 0.8% from November but a decrease of 6.0% from one year ago, marking seven 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 December averaged 57 days on the market (DOM), unchanged from one year ago.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 664,000 in December. This represents an 8.0% increase from the revised November rate of 615,000 and is 4.4% above the December 2022 estimate of 636,000.
The median sales price for new homes ($413,200) decreased 3.0% from November and 4.4% from December 2022.
Supply of new homes was estimated at 453,000 listings (seasonally adjusted) in December, a decrease of 0.9% from November and 0.4% from one year ago. Months of supply decreased from 9.7 one year ago to 9.1 in December 2023.
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