New home sales in Alabama increased 17.6% year-over-year from 522 to 614 closed transactions. Following seasonal trends, sales decreased 29.2% from December. New home sales are up 17.6% year-to-date.
Inventory: New home listings (3,357) decreased 19.0% from January and decreased 1.1% from one year ago. The number of new home listings in January increased significantly from recent years, rising 31.8% from the 5-year average.
At the current sales pace, all the active inventory on the market would sell in 5.5 months, down from 4.8 in December and 6.5 in January 2024. 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 January was $310,288, a decrease of 3.0% from December and a decrease of 3.4% 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 January averaged 64 days on the market (DOM), 11 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 decreased 6.4% year-over-year from 1,349 to 1,263 units. Permits are down 6.4% year-to-date.
Single Family Housing Starts: Housing starts increased 0.6% year-over-year from 1,274 to 1,281 units. Housing starts are up 0.6% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 657,000 in January. This represents a 10.5% decrease from the revised December rate of 734,000 and is 1.1% below the January 2024 estimate of 664,000.
The median sales price for new homes ($446,300) increased 7.5% from December and increased 3.7% from January 2024.
The supply of new homes was estimated at 495,000 listings (seasonally adjusted) in January, an increase of 1.4% from December and 7.4% from one year ago.
The national new home market had 9.0 months of supply in January 2025, up from 8.3 one year ago.
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