New home sales in Alabama increased 24.9% year-over-year from 668 to 834 closed transactions. Following seasonal trends, sales decreased 14.5% from September. New home sales are up 11.8% year-to-date.
Inventory: New home listings (3,709) decreased 2.8% from September but increased 5.4% from one year ago, rising to the highest level since 2009. The number of new home listings in October increased significantly from recent years, rising 35.6% from the 5-year average.
At the current sales pace, all the active inventory on the market would sell in 4.4 months, up from 3.9 in September but down from 5.3 in October 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 October was $314,931, an increase of 0.4% from September but a decrease of 2.4% 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 October averaged 59 days on the market (DOM), 2 days slower 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 22.9% year-over-year from 1,204 to 1,480 units. Permits are up 9.9% year-to-date.
Single Family Housing Starts: Housing starts increased 10.2% year-over-year from 1,291 to 1,423 units. Housing starts are up 10.6% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 610,000 in October. This represents a 17.3% decrease from the revised September rate of 738,000 and is 9.4% below the October 2023 estimate of 673,000.
The median sales price for new homes ($437,300) increased 2.5% from September and 4.7% from October 2023.
The supply of new homes was estimated at 481,000 listings (seasonally adjusted) in October, an increase of 2.1% from September and 4.3% from one year ago.
The national new home market had 9.5 months of supply in October 2024, up from 8.3 one year ago.
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