Phenix City July home sales slip compared to previous year

Phenix City July home sales slip compared to previous year
Sales in the past year have continued to make positive reductions in Phenix City housing inventory, bringing the market into a near-balance of supply and demand. (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 83 units during July, down 16 percent from the same month a year earlier. Another resource to review: Annual Report.

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

Forecast: July sales were 14 units below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through July projected 639 closed transactions, while the actual sales were 642 units.

Supply: Phenix City area housing inventory in July totaled 505 units, a decrease of 19.6 percent from July 2016. Inventory levels have reduced 59 percent from the July peak in 2008. The inventory-to-sales ratio in July was 6.1 months of housing supply. Restated, at the July sales pace, it would take 6.1 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during July.

Demand: July sales decreased by 23 percent from the prior month. Historical data indicate July sales on average (2012-16) increase from June by 1.2 percent. The average number of days on the market until homes sold was 117 days, down 14.6 percent from the previous year and up 8.3 percent from June.

Pricing: The Phenix City median sales price in July was $135,500, a decrease of 7.8 percent from July 2016 and a decrease of 5.2 percent from the prior month. This direction is consistent with historical seasonal data (2012-16) that reflect the July median sales price on average decreases from June by 1.2 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood.

Industry perspective: “We are keeping our full-year economic growth outlook at 2 percent as risks to our forecast are roughly balanced,” said Fannie Mae Chief Economist Doug Duncan. “On the upside, consumer spending growth might not moderate as much as we have accounted for in our forecast. A build-up in inventory also should be positive for growth this quarter, and nonresidential investment in structures will likely continue to improve as oil prices stabilize.”

Click here to download graphs from the Phenix City July 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 to better serve area consumers.

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