Sales: According to the Phenix City Board of Realtors Multiple Listing Service, Phenix City area residential sales totaled 74 units during December, down 17.8 percent from 90 sales in the same month a year earlier. December sales were also down 14 percent compared to 86 sales in November. Results were 3.9 percent below the five-year December average of 77 sales. Two more resources to review: Quarterly Report and the Annual Report.
For all Phenix City area home sales data, click here.
Inventory: Homes listed for sale in the Phenix City area during December totaled 445 units, an increase of 11.5 percent from December 2017’s 399 units and an increase of 3 percent from November 2018’s 432 units. December months of supply totaled 6 months, an increase of 35.6 percent from December 2017. December’s months of supply also increased from November’s 5 months of supply.
Pricing: The Phenix City median sales price in December was $178,528, an increase of 28.5 percent from one year ago and an increase of 6.9 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the December median sales price on average increases from November by 7.2 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days on the market (DOM) for homes sold during December was 119 days, an increase of 7.2 percent from 111 days in December 2017 and an increase of 5.3 percent from 113 days in November.
Forecast: December sales were 20.4 percent below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 93 sales for the month, and actual sales were 74 units. ACRE forecast a total of 1,205 residential sales in the Phenix City area during 2018, while there were 1,148 actual sales.
ACRE’s statewide perspective: After 10 consecutive months of gains, statewide residential sales in December decreased 1.6 percent year-over-year from 4,371 to 4,303 closed transactions. For the entire year, statewide residential sales increased 6.3 percent from 57,427 in 2017 to 61,062 in 2018. Home price appreciation in the state continued to climb as the median sales price in December increased 4.7 percent year-over-year from $151,667 to $158,772. The median sales price for all of 2018 was up 4.6 percent from 2017. Although nationwide inventory levels are trending upwards, Alabama’s residential inventory decreased 6.9 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during December spent an average of 102 days on the market, an improvement of 11 days from 2017.
NAR’s national perspective: During December, total existing-home sales nationwide declined 11.7 percent from approximately 427,000 one year ago to 377,000 currently. Lawrence Yun, chief economist for the National Association of Realtors, says current housing numbers are partially due to higher interest rates during most of 2018. “The housing market is obviously very sensitive to mortgage rates. Softer sales in December reflected consumer search processes and contract signing activity in previous months when mortgage rates were higher than today. Now, with mortgage rates lower, some revival in home sales is expected going into spring.”
The Phenix City Residential Monthly Report is developed in conjunction with the Phenix City Board of Realtors.