May home sales prices in Phenix City area up 11 percent from 2017

May home sales prices in Phenix City area up 11 percent from 2017
Area homes were moving off the market much more quickly in May than they had been a year earlier. (iStock)

Click here to view or print the entire monthly report compliments of the ACRE Corporate Cabinet.

Sales: According to the Phenix City Board of Realtors Multiple Listing Service, Phenix City area residential sales totaled 107 units during May, down 22.5 percent from 138 sales in the same month a year earlier. Results were 13.1 percent above the five-year April average of 95 sales. Two more resources to review: Quarterly Report and the Annual Report.

For all of Phenix City’s area home sales data, click here.

Forecast: May sales were seven units, or 6.1 percent, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 114 sales for the month, while actual sales were 107 units. ACRE forecast a total of 487 residential sales in the Phenix City area year to date, while there were 438 actual sales through April.

Supply: Phenix City area housing inventory in May totaled 475 listings, a decrease of 8.1 percent from one year ago. Inventory levels have reduced 61.9 percent from the 10-year May peak reached in 2008, when 1,248 units were listed for sale. The inventory-to-sales ratio in May was 4.4 months of housing supply. Restated, at the May sales pace, it would take 4.4 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months.

Demand: May sales increased 3.9 percent from the prior month. This direction is consistent with historical data trends indicating that May sales on average (2013-17) increase from April by 16.4 percent. The average number of days on the market until homes sold was 96 days, an improvement of 35 days from one year ago.

Pricing: The Phenix City median sales price in May was $158,000, an increase of 10.9 percent from one year ago and an increase of 5.3 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the May median sales price on average increases from April by 5.3 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

Industry perspective: In both Alabama and the United States, the spring home-buying season has been affected greatly by very low inventory levels. April residential listings decreased 10 percent in the state and decreased 6 percent nationwide from one year ago. Residential sales in Alabama, however, increased 16 percent from one year ago, which is impressive considering the 10 percent drop in inventory. Home price appreciation cooled off somewhat as the statewide median sales price increased 2 percent from one year ago, while it increased 7 percent during the first quarter of the year. Going forward, home sales prices are expected to continue their upward climb during the summer as inventory levels are likely to repeat the declines that were seen during the spring.

Click here to download graphs from the Phenix City Monthly Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply. 

The Phenix City Residential Monthly Report is developed in conjunction with the Phenix City Board of Realtors.

Related Stories