Based on new construction as percentage of total residential sales
Top 5 Markets in New Construction during May
New Construction as a Percentage of Total Residential Sales: May 2018
- Limestone County: 32.4 percent
- Lee County: 22.3 percent
- Huntsville Metro Area: 22.1 percent
- Baldwin County: 20.5 percent
- Birmingham Metro Area: 10.8 percent
May New Construction Recap
Five markets in the state of Alabama saw new construction sales flourish in the month of May. Four of the top five have been constants in the past months, with Birmingham being the new area to crack the top five. However, experts are not expecting this trend to continue in June. The month of May saw lumber prices rise to a new record, mostly due to the tariffs on lumber and imported materials. The new prices on lumber are adding on average $9,000 to the price of a single family home. The good news? Builders are still remaining optimistic about the overall state of the housing market as consumer demand continually increases.
Baldwin County: New construction sales represented 20.5 percent of all residential sales in Baldwin County during May, down from 21.1 percent last month and almost doubled from one year ago.
Baldwin County's new construction market has seen major year-over-year gains in both sales and inventory. The 136 units sold in the area during May is an increase of 147.3 percent from the 55 units sold one year ago. Inventory is also expanding in Baldwin county as the 565 new construction units listed for sale during May is 35.1 percent greater than the 548 similar units listed for sale during May of 2017. Baldwin County’s new construction median sales price went up 7.7 percent to $254,465 in May. Compared to the overall median price increase of 6.4 percent, new construction took the lead in price appreciation.
Birmingham Metro Area: New construction sales represented 10.8 percent of all residential sales in the Birmingham metro area during May, remaining constant with last month and up from 10.1 percent one year ago.
Although new construction inventory in the Birmingham metro area during May declined 5 percent year-over-year, May inventory levels are 69 units above the 5-year average. Birmingham also saw an 12.9% growth in their median sales price from last year, going from $260,425 to $294,035.
Huntsville Metro Area: New construction sales represented 22.1 percent of all residential sales in the Huntsville metro area during May, an increase from 21.1 percent last month and a small decline from 22.7 percent one year ago.
New construction inventory in the Huntsville metro area during May has been stable in recent years, which can be attributed to the job creation in the area. The current inventory of 506 new construction listings is 33 units above the 5-year average of 473 listings. New construction sales also saw a substantial increase above the 5-year average, coming out to 45 sales higher. Surprisingly, Huntsville new construction median sales prices have declined 6.5 percent over the past year, dropping from $274,989 to $257,037.
Lee County: New construction sales represented 22.3 percent of all residential sales in Lee County during May, down from 25.5 percent last month and down from 23.4 percent one year ago.
New construction inventory is trending upwards in Lee County. May’s new construction inventory was over double the amount from last year. Lee County’s median sales price is also seeing considerable increases, rising 17.3 percent to $330,300 versus last years price of $281,700.
Limestone County: Limestone County had the largest portion of new construction sales during May. New construction sales represented 32.4 percent of all residential sales in the Athens area during the month, up from 27.2 percent last month, but declining from 35.8 percent one year ago.
New construction sales in Limestone County have been steady because it gives buyers a viable alternative to living in Huntsville. Days on market in the area have gone down to 78 days, an 18 day decrease from last year. However, Limestone County new construction median sales prices have declined 11.6 percent from last years price of $266,850.