New home sales continue to trend upwards in October
Sales: According to the Alabama Realtors, October new home sales in the state increased 33.1% year-over-year (Y/Y) from 688 to 916 closed transactions, marking 16 consecutive months of Y/Y gains. Sales decreased 4.4% from September, and are now up 22% year-to-date. Additionally, new home sales represented 13.3% of all residential sales in Alabama during October, up from 13.2% one year ago.
For all new construction housing data, click here.
Inventory: New homes listed for sale decreased 23.5% from 2,963 listings one year ago to 2,266 in October. New builds represented 16% of all homes listed for sale statewide. Months of new home supply (inventory to sales ratio) tightened from 4.3 one year ago to 2.5 currently.
Pricing: The median sales price for new construction in October was $261,965, an increase of 3.2% from one year ago and an increase of 0.8% from September. 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 October averaged 54 days on the market (DOM), 46 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.
National Overview: According to the U.S. Census Bureau, new home sales nationwide increased 45.5% year-over-year from approximately 55,000 one year ago to 80,000 in October. Inventory continued to trend downwards as new homes listed for sale declined 14.2% Y/Y. With elevated sales activity and declining inventory, months of supply (inventory to sales ratio) tightened from 5.9 in October 2019 to 3.5 currently. The median sales price increased 2.5% Y/Y from $322,400 to $330,600.
Editor's Note: All information in this article reflects data provided to the Alabama Center for Real Estate for the time period October 1 - 31, 2020. Thus, the performance represented is historical and should not be used as an indicator of future results, particularly considering the impact of COVID-19 on the housing market.