New home sales in Alabama during June decreased 18.5% year-over-year from 985 to 803 closed transactions. Going against seasonal trends, sales decreased 15.5% from May. New home sales are down 2.6% year-to-date.
Inventory: New home listings (2,992) decreased 11.8% from May and 15.9% from one year ago. However, the number of new home listings in June increased significantly from recent years, rising 17.0% from the 5-year average.
At the current sales pace, all the active inventory on the market would sell in 3.7 months, up from 3.6 in May and the same amount in June 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 June was $308,243, a decrease of 2.7% from May and 1.7% 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 June averaged 58 days on the market (DOM), 17 days faster 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 14.4% year-over-year from 1,382 to 1,183 units. Permits are down 9.8% year-to-date.
Single Family Housing Starts: Housing starts decreased 16.5% year-over-year from 1,545 to 1,291 units. Housing starts are down 7.0% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 627,000 in June. This represents a 0.6% increase from the 623,000 sales in May and is 6.6% below the June 2024 level of 671,000.
The median sales price for new homes ($401,800) decreased 4.9% from May and 2.9% from June 2024.
The supply of new homes was estimated at 511,000 listings (seasonally adjusted) in June, an increase of 1.2% from May and an increase of 8.5% from one year ago.
The national new home market had 9.8 months of supply in June 2025, up from 8.4 one year ago.
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