Sales: According to the Phenix City Board of Realtors Multiple Listing Service, Phenix City area residential sales totaled 89 units during September, up 30.9 percent from the same month a year earlier. Year-to-date sales through September increased 12.7 percent from the same period of 2016. Another resource to review: Annual Report.
For all of Phenix City’s area home sales data, click here.
Forecast: September sales were 4 units below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through September projected 835 closed transactions, while the actual sales were 860 units.
Supply: Phenix City area housing inventory in September totaled 450 units, a decrease of 27.5 percent from September 2016. Inventory levels have reduced 63 percent from the September peak in 2007. The inventory-to-sales ratio in September was 5.1 months of housing supply. Restated, at the September sales pace, it would take 5.1 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months.
Demand: September sales decreased by 31 percent from the prior month. Historical data indicate September sales on average (2012-16) increase from August by 0.6 percent. The average number of days on the market until homes sold was 105 days, down 18.6 percent from the previous year and down 18 percent from August.
Pricing: The Phenix City median sales price in September was $150,000, an increase of 6.3 percent from September 2016 and a decrease of 7.1 percent from the prior month. This direction contrasts with historical seasonal data (2012-16) that reflect the September median sales price on average increases from August by 8.3 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 impacts from this season’s hurricanes on the U.S. economy were wide-ranging but should dissipate over time. These include the loss of momentum in consumer spending and residential investment, as well as a decline in September payrolls and August home sales and contract signings,” said Fannie Mae Chief Economist Doug Duncan. “We expect economic activity to rebound in coming months. The recovery will likely be slower for home sales and home building, however, as the labor shortage and rising material prices will likely worsen after the hurricanes, exacerbating already-tight inventory. While we expect full-year economic growth for 2017 to come in at the same rate projected in our prior forecast, we now believe that total home sales will be essentially flat this year compared with the moderate rise predicted in the prior forecast. Despite muted underlying inflation, we continue to expect the Fed to raise rates for the third time this year in December.”
Click here to download graphs from the Phenix City September Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.