New home sales in Alabama increased 5.1% year-over-year in November, rising from 668 to 679 closed transactions. Following seasonal trends, sales increased 1.6% from October. November sales were below pre-covid levels as they decreased 7.8% from the five-year average.
Inventory: New home listings (3,552) increased 1.0% from October and 7.9% from one year ago. The number of new home listings in November is well above pre-covid levels (33.8% above the 5-year average).
At the current sales pace, all the active inventory on the market would sell in 5.2 months, down from 5.3 in October and up from 5.1 in November 2022. The equilibrium point where buyers and sellers have roughly equal bargaining power is six months of supply.
Pricing: The median sales price for new construction in November was $310,482, a decrease of 3.8% from October and 11.7% from one year ago, marking six consecutive months of Y/Y price declines in the new construction market.
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 November averaged 49 days on the market (DOM), equal to one year ago.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 590,000 in November. This represents a 12.2% decrease from the revised October rate of 672,000 but is 1.4% above the November 2022 estimate of 582,000.
The median sales price for new homes ($434,700) increased 4.8% from October but decreased 6.0% from November 2022.
Supply of new homes was estimated at 460,000 listings (seasonally adjusted) in November, an increase of 2.9% from October but a 0.7% decrease from one year ago. Months of supply decreased from 9.4 one year ago to 9.2 in November 2023.
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Monthly New Home Sales Data: Athens, Baldwin County, Birmingham, Calhoun County, Gadsden, Huntsville, Lee County, Marshall County, Mobile, Montgomery, Morgan County, Tuscaloosa, and the Wiregrass region.
Additional Resources: Database of building permits and housing starts for all Alabama Counties and metro areas.
