Sales: According to the Phenix City Board of Realtors Multiple Listing Service, Phenix City area residential sales totaled 92 units during October, up 16.5 percent from the same month a year earlier. Year-to-date sales through October increased 13.1 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: October sales were 6 units above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through October projected 921 closed transactions, while the actual sales were 952 units.
Supply: Phenix City area housing inventory in October totaled 448 units, a decrease of 24.1 percent from October 2016. Inventory levels have reduced 62.7 percent from the October peak in 2007. The inventory-to-sales ratio in October was 4.9 months of housing supply. Restated, at the October sales pace, it would take 4.9 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 increased by 3.4 percent from the prior month. Historical data indicate October sales on average (2012-16) increase from September by 18.1 percent. The average number of days on the market until homes sold was 130 days, down 1.5 percent from the previous year and up 23.8 percent from September.
Pricing: The Phenix City median sales price in October was $136,950, a decrease of 8.7 percent from October 2016 and a decrease of 8.7 percent from the prior month. This direction contrasts with historical seasonal data (2012-16) that reflect the Ocotber median sales price on average increases from September by 6.2 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 first print of third-quarter economic growth showed surprising resiliency. The expected economic hit from the recent natural disasters either failed to materialize or was drowned out by business optimism,” said Fannie Mae Chief Economist Doug Duncan. “Recent data showed a stronger pickup in domestic demand than anticipated, leading us to increase our growth forecast for the final quarter of this year and coming quarters. We also revised higher our 2018 growth forecast to 2 percent. Tax cuts, if enacted, present upside risk to our growth forecast for next year but could also lead to more aggressive Fed action. Housing still remains a drag on the economy, as shortages of labor and available lots, coupled with rising building material prices, further complicate existing inventory, affordability and sales challenges.”
Click here to download graphs from the Phenix City October Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.