New home sales in Alabama hold steady in July compared to 2015
July statewide housing starts were up 13 percent from a year earlier. (iStock)
Click here to view or print the entire new home monthly report compliments of the ACRE Corporate Cabinet.
Demand: New home sales totaling 390 units in July remained on par with last year’s new home sales during July, and sales were 7 percent above the prior month. Average days on market in July of 94 represent a 16 percent decrease from last July.
Supply: Months of new home supply in July was 4.9 months.
Statewide new construction inventory is approximately 13.3 percent above last July and down 2.2 percent from last month.
Pricing: Alabama’s metro median new home sales price during July was $240,380, a decrease of 1.8 percent from July 2015 and a decrease of 0.2 percent from the prior month.
New home pipeline: July statewide housing starts were up 13.2 percent from 2015 but down 2.8 percent from June. Statewide building permits in July were down 1.2 percent from July 2015 and were down 12.3 percent from the prior month.
Residential construction employment: According to the Alabama Department of Industrial Relations, statewide related residential construction employment in July decreased 3 percent (2,500 jobs) to 79,300 from the same period last year and was down 1.6 percent from the previous month.
Local results: Eight of the 27 associations (29 percent) reported building permit gains from July 2015, while 13 associations (48 percent) experienced gains in housing starts. Thirteen associations experienced an increase from their June monthly housing starts.
Industry perspective: According to Robert Dietz, National Association of Home Builders chief economist, “July new home sales recorded the strongest monthly pace since October 2007, growing to a 654,000 seasonally adjusted annual rate. According to estimates from the Census Bureau and Department of Housing and Urban Development, the elevated July rate marked a 12.4 percent gain over downwardly revised, but still strong, estimates for June.”
The ACRE New Construction Monthly Report stems from a partnership with the Home Builders Association of Alabama Foundation. The Alabama Center for Real Estate’s core purpose is to advance the industry by providing relevant research, education and outreach.
