Alabama New Construction Report December 2018

Alabama New Construction Report December 2018 Single Family Permits* Current Month December 2018 786 December permits for new single family vs. Prior Month November 2018 984-20.1% housing units decreased 20.1 percent vs. Last Year (YoY) December 2017 802-2.0% from the previous month and vs. 5-Yr Avg December '13-'17 713 10.3% decreased 2 percent from one year ago. Year-to-Date December 2018 12,938 vs. Last Year (YoY) December 2017 12,005 7.8% Projected Starts** Current Month December 2018 916 vs. Prior Month November 2018 1,022-10.4% vs. Last Year (YoY) December 2017 902 1.6% vs. 5-Yr Avg December '13-'17 785 16.7% December projected single family housing starts decreased 10.4 percent from the prior month and increased 1.6 percent from one year ago. Year to Date December 2018 12,934 vs.prior Year December 2017 11,954 8.2% *Single family permits in the south region decreased 11.4% from the prior month and decreased 1.9% from one year ago. *Single family permits in the US decreased 12.4% from the prior month and decreased 5.6% from one year ago. *Housing starts in the south region decreased 9.3% from the prior month and increased 1% from one year ago. *Housing starts in the United States decreased 11.3% from the prior month and decreased 2.3% from one year ago. *Data Source: U.S. Census Bureau **Calculation: The distribution for projected starts is as follows: Current Month = 44%; 1 Month Prior = 37%; 2 Months Prior = 9%; 3 Months Prior = 3%; 4 Months or more = 7% Total New Construction Sales Current Month December 2018 672 Alabama new construction sales decreased vs. Prior Month November 2018 688-2.3% 5.5 percent year-over-year from 711 to 672 vs. Last Year (YoY) December 2017 711-5.5% closed transactions. Year-to-date new construction sales increased 9.8 percent vs. 5-Yr Avg December 13-'17 542 24.1% from 2017. *Areas/Counties included in total are Baldwin Co, Limestone Co, Huntsville area, Marshall Co, Mobile Co, Morgan Co, Tuscaloosa area, Birmingham area, Calhoun Co, Gadsden area, Lee Co, Montgomery area, and Wiregrass region. vs. Peak December 2017 711-5.5% vs. Trough December 2010 377 78% Year to Date December 2018 7,981 vs. Prior Year December 2017 7,267 9.8% ACRE Commentary Historical New Construction Sales "December new construction sales in Alabama are 10.7 percent above the 3-year average and 24.1 percent above the 5-year average." December 2017 711 Graph: December 2008-2018 December 2016 602 (By month) December 2015 507 December 2014 490 December 2013 398 5- Year Avg: 542 3- Year Avg: 607 800 750 700 650 600 550 500 450 400 350 300 398 New Construction: Total Sales 377 711 672

New Construction Median Sales Price Current Month December 2018 247,142 New Construction: Median Sales Price 260,000 250,000 vs. Prior Month November 2018 250,458-1.3% 240,000 The median sales price for new vs. Last Year (YoY) December 2017 238,565 3.6% 230,000 construction sales increased 3.6 220,000 vs. 5-Yr Avg December 13-'17 218,989 12.9% percent year-over-year from $238,565 210,000 to $247,142. Year-to-date, the median 200,000 sales price increased 3.1 percent from vs. Peak December 2018 247,142 0.0% 190,000 2017. vs. Trough December 2008 176,219 40% 176,219 180,000 Year to Date December 2018 237,894 vs. Prior Year December 2017 230,787 3.1% 170,000 160,000 247,142 ACRE Commentary Historical New Const. Median Sales Price "During December, the median sales price of new construction sales December 2017 238,565 Graph: December 2008-2018 in Alabama increased 7.2 percent above the 3-year average and 12.9 December 2016 231,478 (By month) percent above the 5-year average." December 2015 221,565 December 2014 205,831 December 2013 197,505 5- Year Avg: 218,989 3- Year Avg: 230,536 New Construction Average Days on Market Current Month December 2018 78 The December DOM average improved 7 days year-over-year from 85 to 78. Year-to-date, the DOM average for new construction improved 10 days from 2017. vs. Prior Month November 2018 81-2.6% vs. Last Year (YoY) December 2017 85-7.2% vs. 5-Yr Avg December 13-'17 119-34.0% vs. Peak December 2011 169-53.6% vs. Trough December 2018 78 1% Year to Date December 2018 96 vs. Prior Year December 2017 106-9.6% 180 160 140 120 100 80 60 New Construction: Average DOM 169 164 120 78 ACRE Commentary Historical New Const. Average DOM "The December days on the market average for new construction is 25 days below the 3-year average and 41 days below the 5-year average. The DOM average for new construction is anticipated to remain within the current range (50-100 days) for the forseeable future." December 2017 85 Graph: December 2008-2018 December 2016 106 (By month) December 2015 119 December 2014 121 December 2013 164 5- Year Avg: 119 3- Year Avg: 103

New Construction Total Units Listed for Sale Current Month December 2018 3,225 November new construction listings decreased 2.8 percent year-over-year from 3,106 in November 2017 to 3,019 in November 2018. vs. Prior Month November 2018 3,019 6.8% vs. Last Year (YoY) December 2017 3,068 5.1% vs. 5-Yr Avg December 13-'17 2,657 21.4% vs. Peak December 2008 5,325-39.4% vs. Trough December 2011 2,225 45% New Construction: Total Homes Listed 6,000 5,325 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 2,225 3,225 ACRE Commentary Historical New Construction Inventory "The total number of new construction units available for sale in December 2017 3,068 Graph: December 2008-2018 December increased 19.1 percent above the 3-year average and 21.4 December 2016 2,579 (By month) percent above the 5-year average." December 2015 2,478 December 2014 2,742 December 2013 2,418 5- Year Avg: 2,657 3- Year Avg: 2,708 Sales 800 700 600 500 400 300 200 100 0 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Inventory New Construction Sales New Construction Inventory Average Days on the Market 200 180 160 140 120 100 80 60 40 20 0 260,000 250,000 240,000 230,000 220,000 210,000 200,000 190,000 180,000 170,000 160,000 Median Sales Price New Construction DOM New Construction Median Sales Price This report is compiled and brought to you by ACRE Research. You should not treat any information expressed in ACRE Reports as a specific inducement to make a particular investment or follow a particular strategy. The Alabama Center for Real Estate (ACRE) and/or its partners/work product sponsors does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. ACRE will not be liable for any loss or damage caused by your reliance on information contained in ACRE Reports.

NEW SINGLE FAMILY BUILDING PERMIT TOTALS Alabama State Total 786 984-20.1% 802-2.0% 12,938 12,005 7.8% South Total 29,881 33,716-11.4% 30,468-1.9% 466,748 444,646 5.0% United States Total 53,351 60,886-12.4% 56,488-5.6% 854,241 819,591 4.2% Data Source: U.S. Census Bureau, not seasonally adjusted "South Total" includes the following states: MS, AL, GA, FL, SC, NC, TN, KY, WV, VA, MD, and DE NEW SINGLE FAMILY BUILDING PERMITS ALABAMA'S METROPOLITAN AREAS Metro Area Anniston-Oxford-Jacksonville 0 1-100.0% 3-100.0% 54 56-3.6% Auburn-Opelika 61 106-42.5% 73-16.4% 1,036 971 6.7% Birmingham-Hoover 199 207-3.9% 157 26.8% 2,672 2,711-1.4% Daphne-Fairhope-Foley 126 103 22.3% 142-11.3% 1,903 1,810 5.1% Decatur 10 12-16.7% 6 66.7% 145 153-5.2% Dothan 8 8 0.0% 11-27.3% 214 206 3.9% Florence-Muscle Shoals 10 16-37.5% 13-23.1% 205 205 0.0% Gadsden 2 1 100.0% 4-50.0% 42 56-25.0% Huntsville 166 213-22.1% 155 7.1% 2,856 2,577 10.8% Mobile 33 49-32.7% 41-19.5% 671 635 5.7% Montgomery 42 46-8.7% 34 23.5% 628 738-14.9% Tuscaloosa 31 28 10.7% 39-20.5% 464 473-1.9% Source Partner: www.recenter.tamu.edu/data/building-permits/ By gathering the number of single family new construction permits that are issued each month it allows observation of growth or decline in the new housing market. *NOTE: Permit counts may be subject to slight change month over month due to updated permit reports from our source partner PROJECTED SINGLE FAMILY HOUSING STARTS TOTALS Alabama State Total 916 1,022-10.4% 902 1.6% 12,934 11,954 8.2% South Total 33,078 36,455-9.3% 32,749 1.0% 466,707 443,779 5.2% United States Total 60,099 67,785-11.3% 61,525-2.3% 856,017 816,699 4.8% PROJECTED HOUSING STARTS IN ALABAMA'S METROPOLITAN AREAS County Anniston-Oxford-Jacksonville 1 2-54.4% 5-75.0% 57 56 0.9% Auburn-Opelika 81 92-11.4% 74 9.6% 1,035 975 6.2% Birmingham-Hoover 205 200 2.7% 186 10.4% 2,650 2,726-2.8% Daphne-Fairhope-Foley 121 123-1.6% 147-17.2% 1,924 1,798 7.0% Decatur 12 14-14.5% 11 10.1% 143 154-7.4% Dothan 10 13-22.7% 13-21.2% 217 213 1.6% Florence-Muscle Shoals 14 16-13.4% 14-2.5% 206 204 1.3% Gadsden 2 2-12.4% 6-70.7% 45 57-20.3% Huntsville 198 228-13.3% 189 4.5% 2,846 2,550 11.6% Mobile 44 59-25.9% 48-8.8% 674 646 4.4% Montgomery 45 45-1.3% 50-10.2% 628 743-15.5% Tuscaloosa 29 31-7.0% 36-19.7% 479 453 5.7% NOTE : This representation is based in whole or in part on data supplied by www.recenter.tamu.edu/data/building-permits/ Alabama Center for Real Estate - University of Alabama does not guarantee and is in no way responsible for its accuracy. Defintion: Housing starts are a derived value using a percentage distribution based on the particular region in the United States multiplied times the number of building permits issued in that particular month. Calculation: The distribution for projected starts is as follows: Same Month as Authorization = 44%; 1 Month Prior = 36%; 2 Months Prior = 9%; 3 Months Prior = 3%; 4 Months or more = 6% This report is compiled and brought to you by ACRE Research. You should not treat any information expressed in ACRE Reports as a specific inducement to make a particular investment or follow a particular strategy. The Alabama Center for Real Estate (ACRE) and/or its partners/work product sponsors does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. ACRE will not be liable for any loss or damage caused by your reliance on information contained in ACRE Reports.

New Construction Report - December 2018 Total New Construction Sold 672 688-2.3% 711-5.5% 7,981 7,267 9.8% Number of Units on Market 3,225 3,019 6.8% 3,068 5.1% N/A N/A N/A Median Sales Price 247,142 250,458-1.3% 238,565 3.6% 237,894 230,787 3.1% Average Sales Price 267,999 259,771 3.2% 254,133 5.5% 254,765 245,134 3.9% Average Days on Market 78 81-2.6% 85-7.2% 96 106-9.6% *Statewide Statistics include the areas/counties listed below New Construction: Statewide Statistics* New Construction: Total Sales Baldwin County 117 116 0.9% 122-4.1% 1,461 1,182 23.6% Birmingham Area 169 159 6.3% 189-10.6% 1,855 1,705 8.8% Calhoun County 1 4-75.0% 8-87.5% 46 61-24.6% Decatur Area 6 4 50.0% 6 0.0% 74 68 8.8% Gadsden Area 3 7-57.1% 1 200.0% 42 42 0.0% Huntsville Area 146 182-19.8% 149-2.0% 1,848 1,753 5.4% Lee County 49 53-7.5% 47 4.3% 605 544 11.2% Limestone County 60 55 9.1% 64-6.3% 666 549 21.3% Marshall County 1 4-75.0% 1 0.0% 34 16 112.5% Mobile County 26 17 52.9% 29-10.3% 317 326-2.8% Montgomery Area 52 48 8.3% 59-11.9% 584 638-8.5% Tuscaloosa Area 30 31-3.2% 29 3.4% 319 276 15.6% Wiregrass Region 12 8 50.0% 7 71.4% 130 107 21.5% New Construction: Total Listed for Sale Current Month Last Month % Difference Last year % Difference I/S December-18 November-18 December-17 Ratio Baldwin County 789 587 34.4% 649 21.6% 6.7 Birmingham Area 971 954 1.8% 899 8.0% 5.7 Calhoun County 8 7 14.3% 18-55.6% 8.0 Decatur Area 21 23-8.7% 24-12.5% 3.5 Gadsden Area 14 13 7.7% 14 0.0% 4.7 Huntsville Area 526 542-3.0% 549-4.2% 3.6 Lee County 261 261 0.0% 230 13.5% 5.3 Limestone County 150 160-6.3% 187-19.8% 2.5 Marshall County 21 20 5.0% 17 23.5% 21.0 Mobile County 126 112 12.5% 125 0.8% 4.8 Montgomery Area 152 149 2.0% 177-14.1% 2.9 Tuscaloosa Area 125 130-3.8% 123 1.6% 4.2 Wiregrass Region 61 61 0.0% 56 8.9% 5.1

New Construction: Median Sales Price Baldwin County 219,900 239,900-8.3% 261,000-15.7% 249,654 253,399-1.5% Birmingham Area 299,445 282,270 6.1% 283,760 5.5% 280,150 264,026 6.1% Calhoun County 179,900 186,067-3.3% 233,950-23.1% 202,851 173,512 16.9% Decatur Area 182,247 220,200-17.2% 206,750-11.9% 205,750 203,337 1.2% Gadsden Area 189,000 201,000-6.0% 154,000 22.7% 200,171 193,792 3.3% Huntsville Area 286,763 282,641 1.5% 256,808 11.7% 268,589 260,841 3.0% Lee County 315,000 304,900 3.3% 276,900 13.8% 299,508 279,084 7.3% Limestone County 242,145 279,877-13.5% 232,782 4.0% 256,146 249,276 2.8% Marshall County 320,650 248,500 29.0% 230,000 39.4% 197,854 175,629 12.7% Mobile County 226,118 232,135-2.6% 223,900 1.0% 214,904 216,135-0.6% Montgomery Area 252,199 272,400-7.4% 269,900-6.6% 248,059 253,931-2.3% Tuscaloosa Area 254,480 227,985 11.6% 221,600 14.8% 235,478 231,072 1.9% Wiregrass Region 245,000 278,075-11.9% 250,000-2.0% 233,503 246,193-5.2% New Construction: Average Sales Price Baldwin County 252,776 257,651-1.9% 286,168-11.7% 273,042 272,277 0.3% Birmingham Area 344,449 319,412 7.8% 314,056 9.7% 321,805 282,869 13.8% Calhoun County 179,900 149,900 20.0% 235,700-23.7% 205,697 207,139-0.7% Decatur Area 195,773 237,608-17.6% 213,658-8.4% 210,145 204,334 2.8% Gadsden Area 252,666 189,685 33.2% 154,000 64.1% 208,194 194,998 6.8% Huntsville Area 312,263 299,240 4.4% 282,683 10.5% 290,210 279,863 3.7% Lee County 336,082 323,767 3.8% 284,256 18.2% 319,659 300,882 6.2% Limestone County 266,525 287,819-7.4% 274,984-3.1% 272,140 263,832 3.1% Marshall County 320,650 261,450 22.6% 230,000 39.4% 208,552 178,255 17.0% Mobile County 232,302 238,455-2.6% 224,396 3.5% 228,113 221,169 3.1% Montgomery Area 269,795 300,787-10.3% 272,581-1.0% 265,555 263,290 0.9% Tuscaloosa Area 274,863 253,114 8.6% 256,927 7.0% 268,448 270,949-0.9% Wiregrass Region 245,937 258,133-4.7% 274,314-10.3% 240,387 246,881-2.6% New Construction: Average Days on Market Baldwin County 125 115 8.7% 128-2.3% 123 159-22.4% Birmingham Area Unavailable Unavailable N/A Unavailable N/A Unavailable Unavailable N/A Calhoun County 44 105-58.1% 50-12.0% 75 105-28.7% Decatur Area 80 71 12.7% 75 6.7% 109 78 40.1% Gadsden Area 129 45 186.7% 55 134.5% 94 105-10.8% Huntsville Area 47 53-11.3% 51-7.8% 63 67-5.9% Lee County 113 99 14.1% 105 7.6% 107 98 8.7% Limestone County 28 26 7.7% 46-39.1% 49 78-36.9% Marshall County 44 89-50.6% 1 4300.0% 79 93-15.2% Mobile County 92 112-17.9% 147-37.4% 141 133 5.7% Montgomery Area 89 64 39.1% 87 2.3% 97 100-3.2% Tuscaloosa Area 88 80 10.0% 92-4.3% 90 105-14.6% Wiregrass Region 62 107-42.1% 177-65.0% 127 154-17.3% * Source: Alabama Association of Realtors This report is compiled and brought to you by ACRE Research. You should not treat any information expressed in ACRE Reports as a specific inducement to make a particular investment or follow a particular strategy. The Alabama Center for Real Estate (ACRE) and/or its partners/work product sponsors does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. ACRE will not be liable for any loss or damage caused by your reliance on information contained in ACRE Reports.