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Top 5 Markets for New Construction In September

Top 5 Markets for New Construction In September

Industries: Home Building, Research, Residential Real Estate, Research

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

The Alabama Center for Real Estate created the following rankings based on new construction as a percentage of total residential sales during September.

1.      Athens: 37.1 percent

2.      Lee County: 33.8 percent

3.      Huntsville: 24.0 percent

4.      Baldwin County: 18.8 percent

5.      Montgomery: 13.4 percent
 

September New Construction Recap

Statewide: Sales volume for newly constructed residential housing in Alabama increased 7.1 percent YoY from 635 to 680 transactions. Year-to-date sales reached a total of 6,000 closed transactions, an increase of 11.8 percent from one year ago. The median sales price increased 7.1 percent YoY from $215,545 to $230,769. The year-to-date median sales price for new construction increased 2.8 percent from $228,792 to $235,213. Inventory decreased 1.1 percent from 3,024 new construction listings one year ago to 2,990 in September. Months of supply declined from 4.8 to 4.4, and average days on market increased from 84 to 88. New construction represented 13.4 percent of all residential transactions statewide during September, down slightly from 13.5 percent one year ago.

The statewide new construction market is in growth mode. Sales have grown year-over-year (YOY) every month in 2018 with the exception of January. Inventory, however, is starting to flatten out as July, August, and September saw slight YOY declines in new construction listings. Low inventory in residential markets across Alabama and the United States has been the topic of many headlines throughout 2018. Alabama’s new construction market, however, went against this trend by posting significant inventory gains throughout the first half of the year. Through September, the state’s new construction market averaged 2,964 listings, up 6.5 percent from the same stretch in 2017 which averaged 2,783 listings. For comparison’s sake, statewide residential inventory (existing homes, condominiums, and new construction) is down 8.9 percent from one year ago. Building permit data for September will be released Wednesday, October 24 so stay tuned for a glimpse into what lies ahead for Alabama’s new construction market.

Athens: Sales volume for newly constructed residential housing in the Athens area increased 26 percent YoY from 50 to 63 transactions. Year-to-date sales reached a total of 492 closed transactions, an increase of 24.2 percent from one year ago. The median sales price decreased 8.8 percent YoY from $260,900 to $237,856. The year-to-date median sales price for new construction increased 0.1 percent from $252,277 to $252,485. Inventory decreased 16.6 percent from 181 new construction listings one year ago to 151 in September. Months of supply decreased from 3.6 to 2.4, and average days on market decreased from 92 to 31. New construction represented 29.1 percent of all residential transactions in the area during September, up from 37.1 percent one year ago.

Lee County: Sales volume for newly constructed residential housing in Lee County decreased 1.9 percent YoY from 53 to 52 transactions. Year-to-date sales reached a total of 464 closed transactions, an increase of 11.8 percent from one year ago. The median sales price decreased 7.9 percent YoY from $278,330 to $256,457. The year-to-date median sales price for new construction increased 8.4 percent from $275,999 to $299,155. Inventory increased 19.4 percent from 222 new construction listings one year ago to 265 in September. Months of supply increased from 4.2 to 5.1, and average days on market decreased from 68 to 54. New construction represented 33.8 percent of all residential transactions in the area during September, down from 39 percent one year ago.  

Huntsville: Sales volume for newly constructed residential housing in the Huntsville area increased 9 percent YoY from 144 to 157 transactions. Year-to-date sales reached a total of 1,348 closed transactions, an increase of 3.3 percent from one year ago. The median sales price decreased 2.3 percent YoY from $260,900 to $254,900. The year-to-date median sales price for new construction increased 1.5 percent from $259,861 to $263,715. Inventory increased 0.4 percent from 523 new construction listings one year ago to 525 in September. Months of supply decreased from 3.6 to 3.3, and average days on market increased from 46 to 52. New construction represented 24 percent of all residential transactions in the area during September, down from 24.3 percent one year ago.   

Baldwin County: Sales volume for newly constructed residential housing in Baldwin County decreased 12.5 percent YoY from 120 to 105 transactions. Year-to-date sales reached a total of 1,128 closed transactions, an increase of 34.9 percent from one year ago. The median sales price increased 11.3 percent YoY from $236,675 to $263,500. The year-to-date median sales price for new construction increased 2.1 percent from $247,309 to $255,025. Inventory decreased 0.3 percent from 584 new construction listings one year ago to 582 in September. Months of supply increased from 4.9 to 5.5, and average days on market declined from 132 to 116. New construction represented 18.8 percent of all residential transactions in the area during September, down from 25.5 percent one year ago.

Montgomery: Sales volume for newly constructed residential housing in Montgomery increased 10.9 percent YoY from 46 to 51 transactions. Year-to-date sales reached a total of 448 closed transactions, a decrease of 4.3 percent from one year ago. The median sales price decreased 2.9 percent YoY from $254,529 to $247,199. The year-to-date median sales price for new construction decreased 1.6 percent from $248,749 to $244,734. Inventory decreased 23.6 percent from 203 new construction listings one year ago to 155 in September. Months of supply decreased from 4.4 to 3.0, and average days on market increased from 74 to 79. New construction represented 14 percent of all residential transactions in the area during September, up from 13.4 percent one year ago.  

 

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