Click here to view or print the entire new home monthly report compliments of the ACRE Corporate Cabinet. Join the Center mailing list HERE.

Demand: New home sales totaling 390 units in December increased 2.4 percent from the same period last year in Alabama. December new homes sales were 53 percent above the prior month. Average days on market in December of 106 represent a 25 percent decrease from last December which is encouraging news.

There were 390 new homes sold in Alabama during December.

Supply: Months of new home supply in December was 4.6 months, unchangd from December 2014 and below the 7.3 months of supply during November 2015. Statewide new construction inventory is approximately 2.1 percent above last December and unchanged from November.

Pricing: Alabama metro markets’ median new home sales price during December was $250,415, an increase of 12.3 percent from last December and an increase of 3 percent from November.

New Home Pipeline: December statewide housing starts were down 4.4 percent from 2014 and 8.7 percent below the prior month. Statewide building permits in December were down 6.6 percent from December 2014 and 18.5 percent below last month.

Residential Construction Employment: According to the Alabama Dept. of Industrial Relations, statewide related residential construction employment in December increased 4 percent (+4,000 jobs) to 84,000 from the same period last year and remained unchanged from the previous month. This represents the 17th consecutive months of positive YOY comparisons associated with construction employment.  

Local Results: Thirteen out of the 27 associations (48 percent) reported building permit gains from December 2014, while 13 associations (48 percent) experienced gains in housing starts. Eight associations experienced an increase from their November 2015 monthly housing starts.

Industry Perspective: From David Crowe, NAHB chief economist “New homes sales were up 10.8 percent in December to 544,000 on a seasonally-adjusted annual basis (SAAR) and finished 2015 just past half million (501,000) for the best year since 2007. The increase in signed contracts to purchase a new home comes as mortgage rates remain very low by historic standards and the US economy continues to gain strength. Sales were up in every census region although nominally in the South by 0.4 percent, to 273,000.”

The ACRE New Construction Monthly Report is work product stemming from our partnership with the Home Builder’s Association of Alabama Foundation. The Alabama Center for Real Estate‘s core purpose is to advance the real estate industry in Alabama by providing relevant resources in the areas of research, education and outreach. Join the Center mailing list HERE.