Alabama’s new home sales increased 16.8% year-over-year from 447 to 522 closed transactions in January. Following seasonal trends, sales decreased 40.4% from December. January sales were roughly equal to pre-covid levels as they increased 3.6% from the five-year average.
Inventory: New home listings (3,395) decreased 4.7% from December but increased 4.1% from one year ago. The number of new home listings in January was well above pre-covid levels (34.3% above the 5-year average).
At the current sales pace, all the active inventory on the market would sell in 6.5 months, up from 4.1 in December and 7.3 in January 2023. 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 January was $321,239, an increase of 2.6% from December but a decrease of 6.1% from one year ago, marking eight 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 January averaged 53 days on the market (DOM), 14 days faster 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 661,000 in January. This represents a 1.5% increase from the revised December rate of 651,000 and is 1.8% above the January 2023 estimate of 649,000.
The median sales price for new homes ($420,700) increased 1.8% from December but decreased 2.6% from January 2023.
Supply of new homes was estimated at 456,000 listings (seasonally adjusted) in January, an increase of 0.9% from December and 4.1% from one year ago. Months of supply decreased from 7.9 one year ago to 8.1 in January 2024.
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