Great New for the Fort Benning area home buyers. New home sales are up according to ACRE!
Read below for the details.
Alabama new home sales have experienced growth of 3.1 percent from March 2012. Year-to-date, new home sales are up 12.4 percent.
In March, sixty percent of metro areas experienced an increase in new home sales compared to 2012 with Birmingham leading the state with the highest growth rate of 24 percent followed by Montgomery (4%) and Huntsville (2%). New home sales in March declined in Tuscaloosa (-45%) and Mobile (-17%).
Demand: March new home sales in Alabama’s five metro markets, representing approximately seventy percent of all statewide transactions, slipped 3.9 percent from the prior month. Alabama’s new home sales growth rate in March under performed the US market which experienced an increase of 18.5 percent from March 2012 and 1.5 percent above the prior month, according to the US Census Bureau & HUD. The release also reported that the results from the South region were up 8.0 percent from March 2012 and 19.4 percent from last month.
Alabama NSF permits JPEG.jpgIndicator of future supply – Alabama residential building permits up 14.9% from March 2012. Infograph courtesy of ACRE. All rights reserved.
Supply: Statewide new construction inventory is 5.9 percent higher than last March as Alabama home builders are gradually increasing production to match improving levels of demand. US supply of new homes is up 5.5 percent. Only Birmingham (down 6%) experienced a reduction in inventory from last March.
Alabama’s metro markets in March reflect 5.6 months of new home supply, an increase from 5.5 months of supply experienced last month and also the same as March 2012. According to the US Census Bureau & HUD, the US inventory of new homes for sale increased to 153,000 homes or 4.4 months’ supply, a decline (improvement) from 4.9 months of supply in March 2012.
Pricing: Alabama’s metro market’s median new home sales price in March was $236,293, an increase of 9.6 percent from last month and 25. percent when compared to March 2012.
New Home Pipeline: March statewide housing starts increased by 5.5 percent from the prior month and increased 13.6 percent from March 2012. Housing starts were up 6.5% in 2012. March statewide building permits were up 6.2 percent from the prior month and were 14.9 percent above March 2012. Building permits were up 8.4 percent in 2012.
Residential Construction Employment: According to the Alabama Dept. of Industrial Relations latest report, statewide residential construction employment in March improved 1.9 percent (1,200 jobs) to 63,100 from last month but remains 2.3 below the number of jobs from the same month a year ago.
Local Results: 8 out of the 27 home builder associations (30% – down from 48% in prior month) reported gains in building permits from the prior month (Feb’13) while 14 associations (52% – down from 67%) reported gains in housing starts from last month. Fourteen associations (52% – up from 44% last month) experienced an increase from their March 2012 housing starts.
What’s the latest housing and economic outlook for 2013? In a March 2013 report, analysts at Bank of America/ Merrill Lynch concluded: “We believe that the gain in home prices can persist despite subpar economic growth this year…Absent a significant weakening in the economy with negative payrolls, we think the housing recovery can continue. The combination of low inventory (referring to nationwide level), high affordability and improving expectations for home prices provide powerful momentum for the housing sector.”
This monthly report is provided compliments of the ACRE Corporate Cabinet.