Phenix City year-to-date residential sales up 5 percent in September from last year
Real Estate "sold" sign with red brick building and trees blurry in the background
Click here to view or print the entire September 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 93 units in September, an increase in sales of 16.3 percent from the same period a year earlier. Year-to-date sales through September are 5 percent higher than they were in September 2014. Two more resources to review market: Quarterly Report and Annual Report
Forecast: September sales were 20 percent or 15 units above our monthly forecast. Alabama Center for Real Estate’s (ACRE) year-to-date sales forecast through September projected 686 closed transactions while the actual sales were 740 units, a rise of 7.8 percent.
Historical sales show an uptick for Phenix City compared to last September.
Supply: Phenix City area housing inventory in September totaled 661 units, an increase of 2.3 percent from September 2014. In addition, September inventory increased .8 percent from the prior month. This direction is consistent with historical data that indicate September inventory on average (2010-14) decreases from the month of August by 1.7 percent. Inventory levels have now reduced 45.6 percent from the September peak in 2007. The inventory-to-sales ratio in September was 7.1 months of housing supply. Restated, at the September sales pace, it would take 7.1 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6.0 months in August.
Demand: September sales increased 17.7 percent from the prior month. This direction favorably contrast with historical data that indicates September sales on average (2010-14) decrease from the month of August by 3.3 percent. Days on Market (DOM) until home sold was 113 days, unchanged from the previous month but down 24.2 percent from last year.
Pricing: The Phenix City median sales price in September was $145,000, a decrease of 13.8 percent from September 2014 and an increase of 5.1 percent from last month. This direction (% change) is consistent with historical seasonal data (2010-14) that reflects September on average increase from the month of August by 9.7 percent. It should be noted that the differing sample size (# of residential sales of comparative months) can contribute to statistical volatility including pricing. The Center highly recommends consulting with a real estate professional to discuss prices as it can and will vary from neighborhood to neighborhood.
Industry Perspective: “Our forecast for the year is largely unchanged despite recent market volatility. Fundamentals are positive, suggesting potential for some improvement in the fourth quarter,” said Fannie Mae Chief Economist Doug Duncan. “While core personal consumption expenditures experienced their weakest gain in more than four years in July, real consumer spending rebounded during the month and August auto sales were stronger than they have been in a decade. Consumers may get an added boost during the year from subdued inflation given the stronger dollar and low oil prices. Overall, we anticipate economic growth of 2.4 percent for 2015, up slightly from 2.1 percent in the prior forecast. Consumer and government spending as well as nonresidential and residential investment are expected to contribute to growth while net exports and inventory investment will likely pose headwinds.” For full report click HERE.
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Bryan Davis is the research/media Coordinator for the Alabama Center for Real Estate housed within the Culverhouse College of Commerce at the University of Alabama. He can be reached at 205-348-5416 or at bkdavis@culverhouse.ua.edu.
The Phenix City Residential Monthly Report is work product developed in conjunction with the Phenix City Board of Realtors to better serve Phenix City area consumers. The ACRE monthly report is provided to illustrate the “general” market direction & trends when comparing prior periods with the most current residential data available. Real estate is local and statistics will fluctuate between areas within a city including subdivisions. ACRE recommends that you consult a local real estate professional for “specific” advice associated with your market.
