Sales: According to the Phenix City Board of Realtors Multiple Listing Service, Phenix City area residential sales totaled 78 units during December, unchanged from the same month a year earlier. Home sales for 2016 through December were up 8 percent over 2015 sales. Two more resources to review: Quarterly Report and Annual Report.
For all of Phenix City’s area home sales data, click here.
Forecast: December sales were eight units or 11 percent above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2016 sales forecast through December projected 907 closed transactions, while the actual sales were 1,006 units, a favorable 11 percent difference.
Supply: Phenix City area housing inventory in December totaled 567 units, a decrease of 11.4 percent from December 2015. Inventory levels have reduced 53 percent from the December peak in 2007. The inventory-to-sales ratio in December was 7.3 months of housing supply. Restated, at the December sales pace, it would take 7.3 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during December.
Demand: December sales decreased by 9 percent from the prior month. Historical data indicate December sales on average (2011-15) increase from November by 13 percent. The average number of days on the market until homes sold was 161 days, up 18 percent from the previous year and up 32 percent from November.
Pricing: The Phenix City median sales price in December was $154,720, an increase of 16.5 percent from December 2015 and an increase of 1.3 percent from the prior month. This direction is consistent with historical seasonal data (2011-15) that reflect the December median sales price on average increases from November by 13 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 tenor of our forecast effectively remains unchanged: signs of cautious consumers this quarter, rising interest rates, the renewed increase in the U.S. dollar to a 14-year high, and heightened uncertainty in the political sphere suggest conservatism in our outlook,” said Fannie Mae Chief Economist Doug Duncan. “While we are encouraged that confidence is rising across investors, consumers, businesses, economists and homebuilders, much of it appears to be in anticipation that the forthcoming Administration and the new Congress will enact fiscal policies and deregulation that will help spur growth. While we believe that some pro-growth policies could be adopted next year, it would take time for them to benefit the economy, barring any offsetting initiatives such as more restrictive trade policies.”
Click here to generate more graphs from the Phenix City December Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.