ACRE Report: YTD New Home Sales in Alabama Up 4.5%!

By November 14, 2012Ashley, Residential
Published: Friday, November 02, 2012, 3:25 PM     Updated: Friday, November 02, 2012, 3:26 PM

Alabama Center for Real Estate (ACRE) By Alabama Center for Real Estate (ACRE)

Alabama new home sales in September slipped 3.7 percent from the same period in 2011. Year-to-date (YTD) through September, sales are up 4.5 percent from 2011.

September new home sales in Alabama’s five metro markets, representing approximately seventy percent of all statewide transactions, also experienced a 12.4 percent decrease from the prior month. Real estate sales are seasonal and September represents the annual transitional month when the market anticipates a slower pace in closed transactions, a trend that traditionally continues into the winter quarters.

Sixty percent of metro areas have experienced YTD increase in new home sales compared to 2011 with Montgomery (up 20%) posting the best results followed by Tuscaloosa (13%) and Birmingham (12%). YTD new home sales have declined in Mobile (down 14%) and Huntsville (down 3%).

Demand: In September, Alabama new home sales were outperformed by the US market which reflected an increase of 27.1 percent from September 2012 and 5.7 percent from the prior month, according to the US Census Bureau & HUD. The release also reported that the results from the South region were up 24.3 percent from September 2011 and 16.8 percent down from last month.

Supply: Statewide new construction inventory has declined by approximately 8.5 percent from last September which is consistent with US trend (down 9%). All metro markets have experienced reductions in inventory since September 2011 with the exception of Mobile (up 6%). Birmingham (down 15%) leads the state in inventory followed by Huntsville (-6%), Tuscaloosa (-3%) and Montgomery (-.5).

Alabama’s metro markets in September reflect 4.6 months of new home supply, an decrease from 4.9 months of supply in September 2011 and up from 3.9 months in August 2012. According to the US Census Bureau, the US inventory of new homes for sale increased to 145,000 homes or 4.5 months’ supply, also a big improvement from 6.3 months of supply in September 2011 (down 29%).

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Another Super Read. This is GREAT news for our state economy – Call me when you are ready to buy or list!