Top 5 Markets in New Construction During March

Top 5 Markets in New Construction During March

Topics: Home Building, Residential Real Estate

Markets: Athens (Limestone County), Baldwin County - All, Huntsville-Madison County, Lee County, Montgomery Area

New Construction as a Percentage of Total Residential Sales: March 2018

  1. Limestone County: 36.4 percent
  2. Lee County: 26.4 percent
  3. Huntsville Metro Area: 23.4 percent
  4. Baldwin County: 23.3 percent
  5. Montgomery Metro Area: 18.5 percent

 

March New Construction Recap

Statewide: New construction sales represented 13.5 percent of all residential sales statewide during March, up from 13.3 percent last month and up from 11.2 percent one year ago.

New construction sales accounted for 13.2 percent of all residential sales statewide during the first quarter of 2018, up from 12 percent during the first quarter of 2017.

There were 4.0 months of supply in Alabama's new construction market during March, down from 4.5 months of supply one year ago. As inventory is scarce in Alabama and the nation as a whole, the state's new construction market is an exception. The 2,916 new construction units listed for sale during March is 19 percent above the 5-year average of 2,451 listings.

 

Baldwin County: New construction sales represented 23.3 percent of all residential sales in Baldwin County during March, down from 24.4 percent last month and up from 11.3 percent one year ago.

During the first quarter of 2018, new construction sales represented 22.4 percent of all residential sales in Baldwin County, a strong improvement from 11 percent during the first quarter of 2017.

Baldwin County's new construction market has seen major year-over-year gains in both sales and inventory. The 148 units sold in the area during March is an increase of 97.3 percent from the 75 units sold one year ago. Inventory is also rapidly expanding in Baldwin county as the 630 new construction units listed for sale during March is 235.1 percent greater than the 188 similar units listed for sale during March of 2017.

 

Birmingham Metro Area: New construction sales represented 10.9 percent of all residential sales in the Birmingham metro area during March, down from 12.1 percent last month and up from 10.4 percent one year ago.

During the first quarter of 2018, new construction sales represented 11.4 percent of all residential sales in the Birmingham metro area, down from 12.4 percent during the first quarter of 2017.

Although new construction inventory in the Birmingham metro area during March declined 13.4 percent year-over-year, March inventory levels are 4.8 percent above the 5-year average.  

 

Calhoun County: New construction sales represented 4.5 percent of all residential sales in Calhoun County during March, up from 3.2 percent last month and up from 1.9 percent one year ago.

During the first quarter of 2018, new construction sales represented 3 percent of all residential sales in Calhoun County, down from 5 percent during the first quarter of 2017.

New construction inventory is trending downwards in Calhoun County. The 16 units listed for sale during March is 44.8 below inventory levels one year ago and 55.6 percent below the 5-year average of 36 new construction listings.

 

Gadsden Area: New construction sales represented 5.4 percent of all residential sales in the Gadsden area during March, up from 1.6 percent last month and down from 6 percent one year ago.

During the first quarter of 2018, new construction sales represented 3.8 percent of all residential sales in the Gadsden area, down from 4.5 percent during the first quarter of 2017.

New construction inventory is trending upwards in the Gadsden area. The 21 units listed for sale during March is 75 percent above inventory levels one year ago and 40 percent above the 5-year average of 15 new construction listings.

 

Huntsville Metro Area: New construction sales represented 23.4 percent of all residential sales in the Huntsville metro area during March, down from 25.6 percent last month and down from 25 percent one year ago.

During the first quarter of 2018, new construction sales represented 24.4 percent of all residential sales in the Huntsville metro area, down from 26 percent during the first quarter of 2017.

New construction inventory in the Huntsville metro area during March has been surprisingly stable in recent years. The current inventory of 517 new construction listings is only 2.8 percent above the 5-year average of 503 listings, which is surprising for a city that has seen so much growth in recent years. New construction sales, however, are a different story as the 151 units sold during March is 36 percent above the 5-year average of 111 sales.

 

Lee County: New construction sales represented 26.4 percent of all residential sales in Lee County during March, up from 24.2 percent last month and down from 31.4 percent one year ago.

During the first quarter of 2018, new construction sales represented 25.6 percent of all residential sales in Lee County, down from 29.2 percent during the first quarter of 2017.

New construction inventory is trending upwards in Lee County. The 208 new construction units listed for sale during March is 17.5 percent above the 5-year average of 177 listings.

 

Limestone County: New construction sales represented 36.4 percent of all residential sales in the Athens area during March, up from 34.6 percent last month and up from 33.8 percent one year ago.

During the first quarter of 2018, new construction sales represented 35.6 percent of all residential sales in Limestone County, an improvement from 33 percent during the first quarter of 2017.

New construction listings are selling fast in the Athens area when compared to the rest of the state. The average number of days on the market during March was 55, while the statewide DOM average was 128 days.

 

Marshall County: New construction sales represented 5.3 percent of all residential sales in Marshall County during March, down from 7.5 percent last month and up significantly from 1.2 percent one year ago.

During the first quarter of 2018, new construction sales represented 4.9 percent of all residential sales in Marshall County, a strong improvement from 2.1 percent during the first quarter of 2017.

New construction inventory in Marshall County during March has remained steady in recent years. The 14 units listed for sale are just 1 unit below the 5-year average of 15 listings.

 

Mobile Metro Area: New construction sales represented 6.6 percent of all residential sales in the Mobile metro area during March, up from 5.6 percent last month and down from 7 percent one year ago.

During the first quarter of 2018, new construction sales represented 6.3 percent of all residential sales in the Mobile metro area, down from 7 percent during the first quarter of 2017.

New construction inventory in the Mobile metro area is trending downwards. The 114 units listed for sale during March is 26 percent below the 5-year average for the month. This is not surprising, however, when one considers the rapid growth of new construction inventory in nearby Baldwin County.

 

Montgomery Metro Area: New construction sales represented 18.5 percent of all residential sales in the Montgomery metro area during February, up significantly from 12.8 percent last month and up from 13.6 percent one year ago.

During the first quarter of 2018, new construction sales represented 14.6 percent of all residential sales in the Montgomery metro area, up from 14.3 percent during the first quarter of 2017.

With 77 total sales, March 2018 ties the best month on record (May 2008) for new construction sales in the Montgomery metro area. ACRE's new construction database goes back to January of 2008.  

 

Morgan County: New construction sales represented 4.5 percent of all residential sales in Morgan County during March, down from 6.7 percent last month and up from 2.3 percent one year ago.

During the first quarter of 2018, new construction sales represented 6.7 percent of all residential sales in Morgan County, up significantly from 3.7 percent during the first quarter of 2017.

New construction inventory is also trending downwards in the Decatur area. The 23 units listed for sale during March are 20.7 percent below the 5-year average of 29 listings.

 

Tuscaloosa Metro Area: New construction sales represented 13 percent of all residential sales in the Tuscaloosa metro area during March, up from 8.1 percent last month and up from 10.4 percent one year ago.

During the first quarter of 2018, new construction sales represented 11 percent of all residential sales in the Tuscaloosa metro area, up from 9.6 percent during the first quarter of 2017.

New construction inventory is growing, although slightly, in the Tuscaloosa area. The 144 units listed for sale during March is 4.4 percent above the 5-year average of 138 listings.

 

Wiregrass Region: New construction sales represented 10.7 percent of all residential sales in the Wiregrass region during March, up from 9.3 percent last month and up significantly from 5.7 percent one year ago.

During the first quarter of 2018, new construction sales represented 10.6 percent of all residential sales in the Wiregrass region, up from 7.8 percent during the first quarter of 2017.

New construction inventory has grown month-over-month and year-over-year in the Wiregrass region. However, the March inventory of 65 listings is 1 unit below the 5-year average of 66 listings.

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