ALABAMA REAL ESTATE JOURNAL

Alabama’s new home sales down slightly in December

New home sales in Alabama decreased 1.0% year-over-year from 876 to 867 closed transactions. Going against seasonal trends, sales decreased 0.6% from November. New home sales are up 11.8% year-to-date.   

Inventory: New home listings (4,146) decreased 3.9% from November but increased 16.3% from one year ago. The number of new home listings in December increased significantly from recent years, rising 54.8% from the 5-year average. 

At the current sales pace, all the active inventory on the market would sell in 4.8 months, down from 4.9 in November but up from 4.1 in December 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 December was $319,866, a decrease of 0.5% from November but an increase of 2.2% 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 December averaged 61 days on the market (DOM), 4 days slower than one year ago. Average DOM is expected to remain in the 50 to 70-day range for the foreseeable future.  

Building Permits for New Single-Family Units: Permits for new SF units in Alabama increased 7.0% year-over-year from 1,214 to 1,299 units. Permits are up 9.1% year-to-date.  

Single Family Housing Starts: Housing starts increased 6.3% year-over-year from 1,211 to 1,287 units. Housing starts are up 10.2% year-to-date.  

National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 698,000 in December. This represents a 3.6% increase from the revised November rate of 674,000 and is 6.7% above the December 2023 estimate of 654,000.  

The median sales price for new homes ($427,000) increased 6.1% from November but decreased 0.8% from December 2023.  

The supply of new homes was estimated at 494,000 listings (seasonally adjusted) in December, an increase of 1.2% from November and 10.0% from one year ago.  

The national new home market had 8.5 months of supply in December 2024, up from 8.3 one year ago.  

Click here to view the entire monthly report. 

Facebook
Twitter
LinkedIn
Email
X