Markets with the Highest Percentage of New Construction Sales - October 2019
The Alabama Center for Real Estate created the following rankings based on new construction as a percentage of total residential sales during October.
October New Construction Recap
Statewide Overview: Alabama’s existing-home market had an impressive year in 2018 as total sales surpassed the high water mark set in 2005, and the state’s new construction market is trending in the same direction. Total new construction sales have grown year-over-year (Y/Y) in 44 of the past 48 months, an impressive streak going back to November 2015. October’s new construction sales increased 10.8% from 621 closed transactions in October 2018 to 688 in October 2019. Listings continue to trend downwards as new units available for sale declined 1.7% YY, extending the streak to 9 months. Median sales price for new construction in the state, however, increased 5.7% from one year ago. Stay tuned to see if the state’s new construction and resale markets continue to match or surpass last year’s impressive results.
Athens: Based on new construction as a percentage of total home sales, Athens once again takes the top spot in the state for October. Total sales of newly constructed residential housing in the Athens area (Limestone County) decreased 25.4% Y/Y from 59 closed transactions in October 2018 to 44 in October 2019. Although statewide inventory declined slightly in October, new construction inventory has decreased Y/Y for 16 consecutive months in the Athens area. In October, listings declined 27.2% from 158 one year ago to 115 currently. Partially due to the large drop in inventory, October’s median sales price increased 7.5% from $279,350 to $300,264. Supply is remaining tight as there were 2.6 months of new construction supply in October. Athen’s DOM average is down from 59 days last year to 23 days currently. New construction represented 31.9% of all residential transactions in the area during October, down from 39.6% one year ago.
Lee County: Total sales of newly constructed residential housing in Lee County increased 17.9% Y/Y from 39 to 46 closed transactions. Going against statewide trends, new construction inventory increased 1.9% Y/Y from 269 units for sale in October 2018 to 274 units currently. As inventory saw a Y/Y increase, it is not a surprise to see the median sales price for new construction in the area rise 11% Y/Y from $281,800 to $312,900. Months of new construction supply decreased from 6.9 to 6.0 months Y/Y. New construction listings sold an average of 17 days slower than one year ago, as the area’s DOM average increased from 112 to 129 Y/Y. New construction represented 29.3% of all residential transactions in the area during October, slightly down from 29.8% one year ago.
Huntsville: Huntsville (Madison County) continues to lead other metro areas in the state in total new construction sales. There were 196 units sold in October, representing a significant increase (14%) compared to the 172 units sold from one year ago. Huntsville followed statewide trends in October seeing an increase in Y/Y median sales price. The October median sales price increased 1.3% Y/Y from $280,220 to $283,854. Mirroring statewide trends in the new construction market, inventory decreased 11.7% from 522 to 461 listings. Months of new construction supply remains tight at 2.4 months, and average days on market decreased from 71 days one year ago to 37 currently. New construction represented 27.7% of all residential transactions in Huntsville area during October, slightly down from 28.1% one year ago.
Baldwin County: Total sales of newly constructed residential housing in Baldwin County increased 2.0% Y/Y from 100 to 102 closed transactions. October’s median sales price increased 2.2% Y/Y from $240,830 one year ago to $246,118 currently. Similar to Lee County, Baldwin County’s new construction inventory increased 3.2% Y/Y from 592 to 611 listings. Months of supply in Baldwin county saw a slight increase Y/Y from 5.9 months last year to 6.0 months currently. Average days on market decreased 23 days from 127 last year to the current level of 104 days. New construction sales represented 16.9% of all residential transactions in the area in October, down slightly from 18.2% one year ago.
Birmingham: Sliding into the top five areas for new residential construction in October is Birmingham. Total sales of newly constructed residential housing in the Birmingham area increased 17.9% Y/Y from 145 sales last October to 171 in October 2019. Following statewide trends, median sales price posted significant gains in October, as it increased 6.8% Y/Y from $277,500 in October 2018 to $296,255 in October 2019. Going against the statewide trend of declining new construction inventory, listings in the area increased from 940 to 967 units Y/Y. Months of new construction supply decreased from 6.5 to 5.7. New construction sales represented 13.3% of all residential transactions in October, up from 11.6% last year.