New home sales in Alabama increased 7.3% year-over-year from 909 to 975 closed transactions. Following seasonal trends, sales increased 8.6% from August. New home sales are up 10.5% year-to-date.
Inventory: New home listings (3,814) increased 0.8% from August and 12.5% from one year ago, rising to the highest level since September 2009. The number of new home listings in September increased significantly from recent years, rising 38.1% 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 4.2 in August but up from 3.7 in September 2023. 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 September was $313,552, a decrease of 1.5% from August and of 0.2% 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 September averaged 50 days on the market (DOM), 7 days faster than one year ago. Average DOM is expected to remain in the 40-60 day range for the foreseeable future.
Building Permits for New Single-Family Units: Permits for new SF units in Alabama increased 3.9% year-over-year from 1,294 to 1,344 units. Permits are up 8.6% year-to-date.
Single Family Housing Starts: Housing starts increased 3.9% year-over-year from 1,383 to 1,437 units. Housing starts are up 10.6% year-to-date.
National Overview: According to the U.S. Census Bureau, new home sales nationwide were at a seasonally adjusted annual rate of 738,000 in September. This represents a 4.1% increase from the revised August rate of 709,000 and is 6.3% above the September 2023 estimate of 694,000.
The median sales price for new homes ($426,300) increased 3.8% from August and 0.1% from September 2023.
The supply of new homes was estimated at 470,000 listings (seasonally adjusted) in September, an increase of 0.4% from August and 2.0% from one year ago. The national new home market had 7.6 months of supply in September 2024, up from 7.5 one year ago.
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