Sales: According to the Phenix City Board of Realtors Multiple Listing Service, Phenix City area residential sales totaled 86 units during November, an increase in sales by 91 percent from the same period a year earlier. Year-to-date home sales through November are up 8.5 percent over the same period during 2015. Two more resources to review: Quarterly Report and Annual Report.
For all of Phenix City’s area home sales data, click here.
Forecast: November sales were 23 units or 36 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through November projected 837 closed transactions, while the actual sales were 928 units, a favorable 10.7 percent difference.
Supply: Phenix City area housing inventory in November totaled 594 units, a decrease of 10 percent from November 2015. Inventory levels have now reduced 51 percent from the November peak in 2007. The inventory-to-sales ratio in November was 6.9 months of housing supply. Restated, at the November sales pace, it would take 6.9 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during November.
Demand: November sales increased by 9 percent from the prior month. Historical data indicate November sales on average (2011-15) decrease from October by 4.8 percent. The average number of days on the market until homes sold was 122 days, up 7 percent from the previous year and down 7.6 percent from October.
Pricing: The Phenix City median sales price in November was $152,700, an increase of 8.3 percent from November 2015 and an increase of 1.8 percent from the prior month. This direction is consistent with historical seasonal data (2011-15) that reflect the November median sales price on average increases from October by 3.4 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.
Industry perspective: “The HPSI (home purchase sentiment index) fell in October for the third straight month from its record high in July, reaching the lowest level since March. Recent erosion in sentiment likely reflects, in part, enhanced uncertainty facing consumers today,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Since July, more consumers, on net, have steadily expected mortgage rates to rise and home price appreciation to moderate. Furthermore, consumers’ perception of their income over the past year deteriorated sharply in October to the worst showing since early 2013, weighing on the index. However, this component of the HPSI is volatile from month to month, and the firming trend in wage gains from the October jobs report, if sustained, may foreshadow an improving view in the near future.”
Click here to generate more graphs from the Phenix City November Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.