New home sales in Alabama during August decreased 9.7% year-over-year from 898 to 811 closed transactions. Contrary to seasonal trends, sales decreased 4.5% from July. New home sales are down 3.0% year-to-date.
Inventory: New home listings (2,899) increased 0.6% from July and decreased 23.4% from one year ago. However, the number of new home listings in August increased from the 5-year average, rising 8.6%.
At the current sales pace, all the active inventory on the market would sell in 3.6 months, up from 3.4 in July and down from 4.2 in August 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 August was $313,939, a decrease of 4.4% from July and 1.3% 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 August averaged 65 days on the market (DOM), 14 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 18.0% year-over-year from 1,506 to 1,235 units. Permits are down 9.8% year-to-date.
Single Family Housing Starts: Housing starts decreased 1.0% year-over-year from 1,470 to 1,304 units. Housing starts are down 7.6% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 800,000 in August. This represents a 20.5% increase from the 664,000 sales in July and is 15.4% above the August 2024 level of 693,000.
The median sales price for new homes ($413,000) increased 4.7% from July and 1.9% from August 2024.
The supply of new homes was estimated at 490,000 listings (seasonally adjusted) in August, a decrease of 1.4% from July but an increase of 4.0% from one year ago.
The national new home market had 7.4 months of supply in August 2025, down from 8.2 one year ago.
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