Top 5 Markets for New Construction During June

Top 5 Markets for New Construction During June

Topics: Home Building, Research, Residential Real Estate

Markets: Athens (Limestone County), Baldwin County - All, Baldwin County - Condo Only, Birmingham Metro, Calhoun County, Cherokee County

1.      Athens: 39.4 percent

2.      Lee County: 27.8 percent

3.      Huntsville Metro Area: 24.8 percent

4.      Baldwin County: 24.6 percent

5.      Montgomery Metro Area: 10.2 percent

 

June New Construction Recap

 

Statewide: New construction sales represented 13.6 percent of all residential sales statewide during June, up from 13.5 percent last month and up from 12.6 percent one year ago.

New construction sales accounted for 13.1 percent of all residential sales statewide during the second quarter of 2018, up from 12 percent during the second quarter of 2017.

There were 3.4 months of supply in Alabama's new construction market during June, down from 3.9 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 2,880 new construction units listed for sale during June is 16.8 percent above the 5-year average of 2,466 listings.

 

Baldwin County: New construction sales represented 24.6 percent of all residential sales in Baldwin County during June, up from 20.5 percent last month and up from 21.2 percent one year ago.

During the second quarter of 2018, new construction sales represented 22.2 percent of all residential sales in Baldwin County, a strong improvement from 17.9 percent during the second quarter of 2017.

Baldwin County's new construction market has seen major year-over-year gains in both sales and inventory. The 181 units sold in the area during June is an increase of 24.0 percent from the 146 units sold one year ago. Inventory is also expanding in Baldwin County as the 559 new construction units listed for sale during June is 7.7 percent greater than the 519 similar units listed for sale during June of 2017.

 

Birmingham: New construction sales represented 11.6 percent of all residential sales in the Birmingham metro area during June, up from 10.8 percent last month and up from 7.9 percent one year ago.

During the second quarter of 2018, new construction sales represented 29.0 percent of all residential sales in the Birmingham metro area, up significantly from 9.8 percent during the second quarter of 2017.

Although new construction inventory in the Birmingham metro area during June declined 7.0 year-over-year, June inventory levels are 6.1 percent above the 5-year average.  

 

Calhoun County: New construction sales represented 5.0 percent of all residential sales in Calhoun County during June, down from 5.6 percent last month and up from 2.4 percent one year ago.

During the second quarter of 2018, new construction sales represented 4.1 percent of all residential sales in Calhoun County, up from 3 percent during the second quarter of 2017.

New construction inventory is trending downwards in Calhoun County. The 17 units listed for sale during June is 48.5 below inventory levels one year ago and 54.1 percent below the 5-year average of 37 new construction listings.

 

Gadsden: New construction sales represented 6.8 percent of all residential sales in the Gadsden area during June, unchanged from 6.8 percent last month and up from 6.7 percent one year ago.

During the second quarter of 2018, new construction sales represented 5.4 percent of all residential sales in the Gadsden area, up from 5.3 percent during the second quarter of 2017.

New construction inventory is trending upwards in the Gadsden area. The 15 units listed for sale during June is 25 percent above inventory levels one year ago and 16.7 percent below the 5-year average of 18 new construction listings.

 

Huntsville: New construction sales represented 24.8 percent of all residential sales in the Huntsville metro area during June, up from 22.1 percent last month and up from 24.7 one year ago.

During the second quarter of 2018, new construction sales represented 22.8 percent of all residential sales in the Huntsville metro area, down from 23.5 percent during the second quarter of 2017.

New construction inventory in the Huntsville metro area during June has been surprisingly stable in recent years. The current inventory of 530 new construction listings is only 8.6 percent above the 5-year average of 488 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 197 units sold during June is 37.8 percent above the 5-year average of 143 sales.

 

Lee County: New construction sales represented 27.8 percent of all residential sales in Lee County during June, up from 22.3 last month and up from 26.1 one year ago.

During the second quarter of 2018, new construction sales represented 25.0 percent of all residential sales in Lee County, up from 24.6 percent during the second quarter of 2017.

New construction inventory is trending upwards in Lee County. The 233 new construction units listed for sale during June is 36.3 percent above the 5-year average of 171 listings.

 

Limestone County: New construction sales represented 39.4 percent of all residential sales in the Athens area during June, up from 32.4 percent last month and up from 37.8 percent one year ago.

During the second quarter of 2018, new construction sales represented 33.4 percent of all residential sales in Limestone County, down from 34.0 percent during the second 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 June was 38, while the statewide DOM average was 128 days.

 

Marshall County: New construction sales represented 3.3 percent of all residential sales in Marshall County during June, up from 0.0 percent last month and up from 0.0 percent one year ago.

During the second quarter of 2018, new construction sales represented 3.2 percent of all residential sales in Marshall County, a strong improvement from 0.85 percent during the second quarter of 2017.

New construction inventory in Marshall County during June has remained steady in recent years. The 16 units listed for sale are steady with the 5-year average of 16 listings.

 

Mobile: New construction sales represented 8.2 percent of all residential sales in the Mobile metro area during June, up from 5.6 percent last month and down from 9.0 percent one year ago.

During the second quarter of 2018, new construction sales represented 7.8 percent of all residential sales in the Mobile metro area, up from 7.7 percent during the second quarter of 2017.

New construction inventory in the Mobile metro area is trending downwards. The 108 units listed for sale during June is 24.5 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: New construction sales represented 10.2 percent of all residential sales in the Montgomery metro area during June, down from 11.0 percent last month and down from 12.6 percent one year ago.

During the second quarter of 2018, new construction sales represented 11.5 percent of all residential sales in the Montgomery metro area, down from 13.9 percent during the second quarter of 2017.

 

Morgan County: New construction sales represented 3.1 percent of all residential sales in Morgan County during June, up from 2.5 percent last month and down from 3.3 percent one year ago.

During the second quarter of 2018, new construction sales represented 2.8 percent of all residential sales in Morgan County, down from 4.7 percent during the second quarter of 2017.

New construction inventory is trending upwards in the Decatur area. The 31 units listed for sale during June are 29.2 percent above the 5-year average of 24 listings.

 

Tuscaloosa: New construction sales represented 9.1 percent of all residential sales in the Tuscaloosa metro area during June, down from 10.0 percent last month and down from 10.4 percent one year ago.

During the second quarter of 2018, new construction sales represented 10.7percent of all residential sales in the Tuscaloosa metro area, up from 9.0 percent during the second quarter of 2017.

New construction inventory is growing, although slightly, in the Tuscaloosa area. The 140 units listed for sale during June is 7.7 percent above the 5-year average of 130 listings.

 

Wiregrass Region: New construction sales represented 13.3 percent of all residential sales in the Wiregrass region during June, up from 12.6 percent last month and down from 15.6 percent one year ago.

During the second quarter of 2018, new construction sales represented 11.6 percent of all residential sales in the Wiregrass region, down from 12.7 percent during the second quarter of 2017.

New construction inventory has grown month-over-month and year-over-year in the Wiregrass region. The June inventory of 61 listings is 2 units above the 5-year average of 59 listings.

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