Alabama’s new home market continues growth in January
Sales: According to the Alabama Realtors, January new home sales in the state increased 14.7% year-over-year (Y/Y) from 652 to 748 closed transactions, marking 18 consecutive months of Y/Y gains. Following seasonal trends, sales decreased 34% from December. New construction represented 15.5% of all residential sales in Alabama during January, down from 15.9% one year ago.
For all new construction housing data, click here.
Inventory: New homes listed for sale decreased 30.6% year-over-year from 2,877 listings one year ago to 1,997 in January. New builds represented 18% of all homes listed for sale statewide. Months of new home supply (inventory to sales ratio) tightened from 4.4 one year ago to 2.7 currently.
Pricing: The median sales price for new construction in January was $268,616, an increase of 7.8% from one year ago and a decrease of 1.9% from December. 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 January averaged 49 days on the market (DOM), 28 days faster than one year ago.
Monthly new construction sales data is available for the following markets: Athens, Baldwin County, Birmingham, Calhoun County, Gadsden, Huntsville, Lee County, Marshall County, Mobile, Montgomery, Morgan County, Tuscaloosa, and the Wiregrass region.
Click here to view the entire monthly report.
The Alabama New Construction Monthly Report is developed in connection with the Alabama Association of Realtors.
National Overview: According to the U.S. Census Bureau, new home sales nationwide increased 18.6% year-over-year from approximately 59,000 one year ago to 70,000 in January. Inventory continued to trend downwards as new homes listed for sale declined 7% Y/Y. With elevated sales activity and declining inventory, months of supply (inventory to sales ratio) tightened from 5.6 in January 2019 to 4.4 currently. The median sales price increased 7.4% Y/Y from $328,900 to $353,100.
Editor's Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period January 1 - 31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results.