Alabama new home sales continue to trend upwards in July 2020
Sales: According to the Alabama Association of Realtors, July new home sales in the state increased 30.9% year-over-year from 800 to 1,047 closed transactions. Sales decreased 2.1% from June, when new home sales hit an all-time high (1,070), and are now up 21.1% year-to-date. Additionally, new home sales represented 13.6% of all residential sales in Alabama during July, up from 12.7% one year ago. As the COVID-19 pandemic continues to unfold, however, declining sales activity in Alabama’s new construction market remains a possibility in the months ahead.
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Inventory: New homes listed for sale decreased 10.6% from 2,841 listings one year ago to 2,540 in July. New builds represented 16.1% of all homes listed for sale statewide. Months of new home supply (inventory to sales ratio) tightened from 3.6 one year ago to 2.4 currently.
Pricing: The median sales price for new construction in July was $249,928, an increase of 0.3% from one year ago and an increase of 5.2% from June. 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 58 days on the market (DOM), 14 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.
Editor's Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period July 1 - 31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.