New home sales in Alabama during July increased 1.8% year-over-year from 834 to 849 closed transactions. Following seasonal trends, sales increased 5.7% from June. New home sales are down 1.9% year-to-date.
Inventory: New home listings (2,883) decreased 3.6% from June and 23.8% from one year ago. However, the number of new home listings in July increased from the 5-year average, rising 7.7%.
At the current sales pace, all the active inventory on the market would sell in 3.4 months, down from 3.7 in June and down from 4.5 in July 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 July was $328,420, an increase of 6.5% from June and 1.4% 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 July averaged 59 days on the market (DOM), 9 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 0.9% year-over-year from 1,393 to 1,381 units. Permits are down 8.6% year-to-date.
Single Family Housing Starts: Housing starts decreased 7.7% year-over-year from 1,427 to 1,317 units. Housing starts are down 7.7% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 652,000 in July. This represents a 0.6% decrease from the 656,000 sales in June and is 8.2% below the July 2024 level of 710,000.
The median sales price for new homes ($403,800) decreased 0.8% from June and 5.9% from July 2024.
The supply of new homes was estimated at 499,000 listings (seasonally adjusted) in July, a decrease of 0.6% from June but an increase of 7.3% from one year ago.
The national new home market had 9.2 months of supply in July 2025, up from 7.9 one year ago.
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