New home sales in Alabama increased 12.4% year-over-year from 799 to 898 closed transactions. Following seasonal trends, sales increased 7.7% from July. New home sales are up 11.0% year-to-date.
Inventory: New home listings (3,783) were unchanged from July but increased 23.1% from one year ago. The number of new home listings in August increased significantly from recent years, rising 52.4% above the 5-year average.
At the current sales pace, all the active inventory on the market would sell in 4.2 months, down from 4.5 in July but up from 3.8 in August 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 August was $318,207, a decrease of 1.8% from July but an increase of 0.9% 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 August averaged 51 days on the market (DOM), 8 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 4.9% year-over-year from 1,436 to 1,506 units. Permits are up 9.2% year-to-date.
Single Family Housing Starts: Housing starts decreased 4.8% year-over-year from 1,402 to 1,470 units. Housing starts are up 11.5% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 716,000 in August. This represents a 4.7% decrease from the revised July rate of 751,000 but is 9.8% above the August 2023 estimate of 652,000.
