New home sales in Alabama increased 28.4% year-over-year from 679 to 872 closed transactions. Going against seasonal trends, sales increased 4.6% from October. New home sales are up 13.2% year-to-date.
Inventory: New home listings (4,316) increased 16.4% from October and 21.5% from one year ago. The number of new home listings in November increased significantly from recent years, rising 56.3% from the 5-year average.
At the current sales pace, all the active inventory on the market would sell in 4.9 months, up from 4.4 in October but down from 5.2 in November 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 November was $321,625, an increase of 2.1% from October and 3.6% 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 November averaged 52 days on the market (DOM), 3 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 1.7% year-over-year from 1,161 to 1,181 units. Permits are up 9.2% year-to-date.
Single Family Housing Starts: Housing starts increased 10.1% year-over-year from 1,241 to 1,331 units. Housing starts are up 10.5% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 664,000 in November. This represents a 5.9% increase from the revised October rate of 627,000 and is 8.7% above the November 2023 estimate of 611,000.
The median sales price for new homes ($402,600) decreased 5.4% from October and 6.1% from November 2023.
The supply of new homes was estimated at 490,000 listings (seasonally adjusted) in November, an increase of 2.0% from October and 5.9% from one year ago.
The national new home market had 8.9 months of supply in November 2024, up from 8.3 one year ago.
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