Top 5 Markets for New Construction (July 2019)
Topics: Home Building, Research, Residential Real Estate
Markets: Athens (Limestone County), Baldwin County - Condo Only, Huntsville-Madison County, Lee County, Statewide, Wiregrass
The Alabama Center for Real Estate created the following rankings based on new construction as a percentage of total residential sales during July.
- 1. Athens: 31.7%
- 2. Lee County: 29.5%
- 3. Huntsville: 24.9%
- 4. Baldwin County: 19.6%
- 5. Wiregrass Region: 12.6%
July New Construction Recap
Statewide Overview: Alabama’s existing-home market had an impressive year in 2018 as total sales surpassed the high water mark set in 2005, and the state’s new construction market is trending in the same direction. Total new construction sales have grown year-over-year in 41 of the past 45 months, an impressive streak going back to November 2015. July’s new construction sales increased 15.3% from 694 closed transactions in July 2018 to 800 in July 2019. Despite the upwards trends of new construction sales, listings remain tight compared to previous years. New construction listings have declined Y/Y in 10 of the last 14 months. With a 2.4% increase in inventory this month, it was not surprising to see the statewide median sales price decrease 1.3% when compared to the same time one year ago. Stay tuned to see if the state’s new construction and resale markets continue to match or surpass last year’s impressive results.
Athens: Once again Athens led the state in new construction as a percentage of total residential sales. Total sales of newly constructed residential housing in the Athens area (Limestone County) increased 15.4% Y/Y from 52 closed transactions in July 2018 to 60 in July 2019. July’s median sales price increased (12.7%) from $247,703 to $279,034. Following statewide trends, new construction inventory has decreased Y/Y for 13 consecutive months in the Athens area. In July, listings declined 32.9% from 167 one year ago to 112 currently. Supply is tightening as there were 1.9 months of new construction supply in July. Average days on market was unchanged from one year ago (36 days). New construction represented 31.7% of all residential transactions in the area during July, down from 32.7% one year ago.
Lee County: Total sales of newly constructed residential housing in Lee County increased 24.5% Y/Y from 53 to 66 closed transactions. The July median sales price, however, decreased 4.2% Y/Y from $313,290 to $300,050. Going against statewide trends, new construction inventory increased 3.9% Y/Y from 255 to 265 listings. Months of new construction supply decreased from 4.8 to 4 month Y/Y. New construction listings sold an average of 43 days slower than one year ago as the area’s DOM average increased from 103 to 146 Y/Y. New construction represented 29.5% of all residential transactions in the area during July, up from 28.6% one year ago.
Huntsville: Huntsville (Madison County) continues to lead other metro areas in the state in total new construction sales. There were 215 units sold represented a significant increase (28.7%) from one year ago. The July median sales price increased 4.1% Y/Y from $270,886 to $281,936. Mirroring statewide trends in the new construction market, inventory decreased 10.9% from 505 to 450 listings. Months of new construction supply tightened down to 2.1 months, and average days on market increased slightly from 43 days one year ago to 46 currently. New construction represented 24.9% of all residential transactions in Huntsville area during July, up from 22.2% one year ago.
Baldwin County: Total sales of newly constructed residential housing in Baldwin County increased 0.8% Y/Y from 126 to 1127 closed transactions. July’s median sales price also decreased, falling 5.0% Y/Y from $263,060 one year ago to $249,900 currently. Going against statewide trends, Baldwin County’s new construction inventory increased 2.8% Y/Y from 583 to 596 listings. With relatively flat new construction sales growth and rising inventory, it was not surprising to see the area’s inventory to sales ratio expand from 4.6 months in July 2018 to 4.7 in July 2019. Average days on market increased 3 days from 122 last year to the current level of 125. New construction sales represented19.6% of all residential transactions in the area in July, up from 19.5% one year ago.
Wiregrass Region: Total sales of newly constructed residential housing in the Wiregrass Region increased impressive 8.3% Y/Y from 12 to 13 closed transactions. Median sales price in July decreased 2.1% Y/Y from $227,000 in July 2018 to $263,700 in June 2019. Going with the statewide trend of declining new construction inventory, listings in the area decreased significantly from 63 to 38 units Y/Y. Months of new construction supply tightened from 5.3 to 2.9, while average days to sell improved from 98 one year ago to 78 currently.