New home sales in Alabama increased 35.1% year-over-year from 561 to 758 closed transactions. Following seasonal trends, sales increased 45.2% from January. New home sales are up 27.0% year-to-date.
Inventory: New home listings (3,383) decreased 0.4% from January but increased 8.4% from one year ago. The number of new home listings in February was well above pre-covid levels (48.2% above the 5-year average).
At the current sales pace, all the active inventory on the market would sell in 4.5 months, down from 6.5 in January and 5.3 in February 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 February was $337,671, an increase of 5.1% from January and 1.3% from one year ago, ending 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 February averaged 60 days on the market (DOM), 7 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 662,000 in February. This represents a 0.3% decrease from the revised January rate of 664,000 but is 5.9% above the February 2023 estimate of 625,000.
The median sales price for new homes ($400,500) decreased 3.5% from January and 7.6% from February 2023.
The supply of new homes was estimated at 456,000 listings (seasonally adjusted) in February, a decrease of 0.2% from January but an increase of 6.5% from one year ago. Months of supply was 7.6 in February 2024, unchanged from one year ago.
