Alabama’s new home sales continue to rise in April
Sales: According to the Alabama Realtors, April new home sales in the state increased 20% year-over-year (Y/Y) from 814 to 977 closed transactions, marking 22 consecutive months of Y/Y gains. Following seasonal trends, sales decreased 9.7% from March. New construction represented 13.8% of all residential sales in Alabama during April, down from 15.4% one year ago.
For all new construction housing data, click here.
Inventory: New homes listed for sale decreased 50.5% year-over-year from 2,670 listings one year ago to 1,321 in April, a record low. New builds represented 14% of all homes listed for sale statewide. Months of new home supply (inventory to sales ratio) tightened from 3.3 one year ago to 1.4 currently, also a record low.
Pricing: The median sales price for new construction in April was $284,048, a record high and an increase of 15.5% from one year ago and 2.7% from March. 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 April averaged 43 days on the market (DOM), a record low and 47 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.
Building Permits: Permits for new single family homes in Alabama increased 24.7% year-over-year from 1,298 in April 2020 to 1,618 in April 2021. Permits are up 18.3% year-to-date (YTD). The Huntsville area continues to lead the state in new construction activity with 1,503 permits issued this year, followed by the Birmingham area with 1,398 permits. Homebuilding activity has increased from 2020 in both areas as single family permits are up 8% YTD in the Huntsville area and up 35.9% YTD in the Birmingham area.
Ten of the state's 12 metro areas report increased permit activity from 2020. Areas with the largest permit growth YTD include Dothan (57.5%) and Florence-Muscle Shoals (56.3%). The two metro areas with declining activity include Daphne-Fairhope-Foley area (-0.9% YTD) and Anniston-Oxford-Jacksonville (-40.7% YTD).
National Overview: According to the U.S. Census Bureau, new home sales nationwide (not seasonally adjusted) increased 50% year-over-year from approximately 52,000 one year ago to 78,000 in April. Inventory continued to trend downwards but at a slower rate as new homes listed for sale declined 1% Y/Y. With elevated sales activity and declining inventory, months of supply (inventory to sales ratio) tightened from 6.1 in April 2020 to 4.1 currently. The median sales price increased 20.1% Y/Y from $310,100 to $372,400.
Editor's Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period April 1 - 30, 2021. Thus, the performance represented is historical and should not be used as an indicator of future results.