New home sales in Alabama increased 8.2% year-over-year from 843 to 912 closed transactions. Following seasonal trends, sales increased 13.7% from April. New home sales are up 13.5% year-to-date.
Inventory: New home listings (3,545) increased 0.5% from April and 14.6% from one year ago. The number of new home listings in May increased significantly from recent years, rising 50.5% above the 5-year average.
At the current sales pace, all the active inventory on the market would sell in 3.9 months, down from 4.4 in April but up from 3.7 in May 2023. The equilibrium point where buyers and sellers have roughly equal bargaining power is 6 months of supply.
Pricing: The median sales price for new construction in May was $319,546, a decrease of 6.8% from April and 5.7% from one year ago.
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 May averaged 55 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 619,000 in May. This represents a 11.3% decrease from the revised April rate of 698,000 and is 16.5% below the May 2023 estimate of 741,000.
The median sales price for new homes ($417,400) decreased 0.1% from April and 0.9% from May 2023.
The supply of new homes was estimated at 481,000 listings (seasonally adjusted) in May, an increase of 1.5% from April and 12.9% from one year ago. Months of supply was 9.3 in May 2024, up from 6.9 one year ago.
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