Sales: According to the Phenix City Board of Realtors Multiple Listing Service, Phenix City area residential sales totaled 138 units during May, up 35 percent from the same month a year earlier. Two more resources to review: Quarterly Report and Annual Report.
For all of Phenix City’s area home sales data, click here.
Forecast: May sales were 38 units above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through May projected 437 closed transactions, while the actual sales were 451 units.
Supply: Phenix City area housing inventory in May totaled 517 units, a decrease of 23 percent from May 2016. Inventory levels have reduced 59 percent from the May peak in 2008. The inventory-to-sales ratio in May was 3.7 months of housing supply. Restated, at the May sales pace, it would take 3.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during May.
Demand: May sales increased by 74 percent from the prior month. Historical data indicate May sales on average (2012-16) increase from April by 16 percent. The average number of days on the market until homes sold was 131 days, down 12 percent from the previous year and 7.4 percent from April.
Pricing: The Phenix City median sales price in May was $142,500, an increase of 5 percent from May 2016 and an increase of 14 percent from the prior month. This direction is consistent with historical seasonal data (2012-16) that reflect the May median sales price on average increases from April by 8 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: “Once again, our full-year growth forecast remains intact as the economy grinds along, with the prospect of material policy changes appearing to be delayed,” said Fannie Mae Chief Economist Doug Duncan. “We expect consumer spending to resume its role as the biggest driver of growth in the second quarter amid improvements in the labor market. Positive demographic factors should continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial homeownership rates. However, the tight supply of homes for sale continues to act as both a boon to home prices and an impediment to affordability.”
Click here to generate more graphs from the Phenix City May Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.