New home sales in Alabama during April increased 1.4% year-over-year from 802 to 813 closed transactions. Following seasonal trends, sales increased 0.2% from March. New home sales are up 0.6% year-to-date.
Inventory: New home listings (3,186) increased 8.3% from March and decreased 9.7% from one year ago. The number of new home listings in April increased significantly from recent years, rising 23.2% from the 5-year average.
At the current sales pace, all the active inventory on the market would sell in 3.9 months, down from 3.6 in March and 4.4 in April 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 April was $315,325, an increase of 0.7% from March and a decrease of 8.0% 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 April averaged 88 days on the market (DOM), 25 days slower than one year ago. Average DOM is expected to remain in the 70 to 90-day range for the foreseeable future.
Building Permits for New Single-Family Units: Permits for new SF units in Alabama decreased 11.0% year-over-year from 1,646 to 1,465 units. Permits are down 5.1% year-to-date.
Single Family Housing Starts: Housing starts decreased 2.9% year-over-year from 1,498 to 1,455 units. Housing starts are down 2.1% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 743,000 in April. This represents a 10.9% increase from the revised March rate of 670,000 and is 3.3% above the April 2024 estimate of 719,000.
The median sales price for new homes ($407,200) increased 0.8% from March and decreased 2.0% from April 2024.
The supply of new homes was estimated at 504,000 listings (seasonally adjusted) in April, a decrease of 0.6% from March and an increase of 8.6% from one year ago.
The national new home market had 8.1 months of supply in April 2025, up from 7.7 one year ago.
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