New home sales in Alabama during March decreased 7.2% year-over-year from 874 to 811 closed transactions. Following seasonal trends, sales increased 10.0% from February. New home sales are up 0.4% year-to-date.
Inventory: New home listings (2,943) decreased 3.2% from February and decreased 12.6% from one year ago. The number of new home listings in March increased significantly from recent years, rising 25.5% from the 5-year average.
At the current sales pace, all the active inventory on the market would sell in 3.6 months, down from 4.1 in February and 3.9 in March 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 March was $313,267, a decrease of 0.3% from February and an increase of 1.0% 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 March averaged 72 days on the market (DOM), 5 days faster than one year ago. Average DOM is expected to remain in the 60 to 80-day range for the foreseeable future.
Building Permits for New Single-Family Units: Permits for new SF units in Alabama increased 9.4% year-over-year from 1,388 to 1,518 units. Permits are down 2.8% year-to-date.
Single Family Housing Starts: Housing starts decreased 0.5% year-over-year from 1,403 to 1,396 units. Housing starts are down 1.9% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 724,000 in March. This represents a 7.4% increase from the revised February rate of 674,000 and is 6.0% above the March 2024 estimate of 683,000.
The median sales price for new homes ($403,600) decreased 1.9% from February and decreased 7.5% from March 2024.
The supply of new homes was estimated at 503,000 listings (seasonally adjusted) in March, an increase of 0.6% from February and an increase of 7.9% from one year ago.
The national new home market had 8.3 months of supply in March 2025, up from 8.2 one year ago.
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