New home sales in Alabama increased 8.7% year-over-year from 767 to 834 closed transactions. Following seasonal trends, sales increased 0.8% from June. New home sales are up 10.8% year-to-date.
Inventory: New home listings (3,782) increased 6.3% from June and 23.7% from one year ago. The number of new home listings in July increased significantly from recent years, rising 52.0% above the 5-year average.
At the current sales pace, all the active inventory on the market would sell in 4.5 months, up from 3.6 in June and 4.0 in July 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 July was $323,958, an increase of 3.3% from June and 2.1% 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 July averaged 50 days on the market (DOM), 6 days faster than one year ago. Average DOM is expected to remain in the 40-60 day range for the foreseeable future.
Building Permits for New Single-Family Units: Permits for new SF units in Alabama increased 5.3% year-over-year from 1,323 to 1,393 units. Permits are up 9.8% year-to-date.
Single Family Housing Starts: Housing starts decreased 3.3% year-over-year from 1,476 to 1,427 units. Housing starts are up 12.6% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 739,000 in July. This represents a 10.6% increase from the revised June rate of 668,000 and is 5.6% above the July 2023 estimate of 700,000.
The median sales price for new homes ($429,800) increased 3.1% from June but decreased 1.4% from July 2023.
The supply of new homes was estimated at 462,000 listings (seasonally adjusted) in July, a decrease of 1.1% from June but an increase of 8.2% from one year ago. The national new home market had 7.5 months of supply in July 2024, up from 7.3 one year ago.
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