Phenix City year-to-date home sales through May up 6 percent over last year

For May itself, Phenix City home sales increased 20 percent from a year earlier. (iStock)
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Sales: According to the Phenix City Board of Realtors Multiple Listing Service, Phenix City area residential sales totaled 102 units during May, an increase in sales by 20 percent from the same period a year earlier. Year-to-date home sales through May are up 5.8 percent over the same period during 2015. Two more resources to review: Quarterly Report and Annual Report.
For all of Phenix City’s area home sales data, click here.

Year-to-date home sales through May in Phenix City increased 6 percent over the same period a year ago.
Forecast: May sales were 19 units or 23 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s year-to-date sales forecast through May projected 366 closed transactions, while the actual sales were 421 units, a favorable 15 percent difference.
Supply: Phenix City area housing inventory in May totaled 667 units, an increase of 6.7 percent from May 2015. In addition, May inventory increased 0.3 percent from April. This direction contrasts with historical data that indicate May inventory on average (2011-15) decreases from April by 4.7 percent. Inventory levels have now reduced 41.6 percent from the May peak in 2007. The inventory-to-sales ratio in May was 6.5 months of housing supply. Restated, at the May sales pace, it would take 6.5 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 17 units from the prior month. Historical data indicate May sales on average (2011-15) decrease from April by 1.2 percent. Days on market until homes sold was 117 days, down 10 percent from the previous year and 7.1 percent from April.
Pricing: The Phenix City median sales price in May was $135,150, a decrease of 13 percent from May 2015 and a decrease of 1.4 percent from the prior month. This direction contrasts with historical seasonal data (2011-15) that reflect the May median sales price on average increases from April by 4.6 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: “Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home-buying season gains momentum, the effect may be muted by May’s discouraging jobs report.” For the full report on home purchase sentiment, click here.
The Phenix City Residential Monthly Report is developed in conjunction with the Phenix City Board of Realtors to better serve area consumers.