Sales: According to the Phenix City Board of Realtors Multiple Listing Service, Phenix City area residential sales totaled 129 units during August, up 44.9 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: August sales were 26 units above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE’s 2017 sales forecast through August projected 742 closed transactions, while the actual sales were 771 units.
Supply: Phenix City area housing inventory in August totaled 480 units, a decrease of 23.8 percent from August 2016. Inventory levels have reduced 54.5 percent from the August peak in 2007. The inventory-to-sales ratio in August was 3.7 months of housing supply. Restated, at the August sales pace, it would take 3.7 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during August.
Demand: August sales increased by 55.4 percent from the prior month. Historical data indicate August sales on average (2012-16) decrease from July by 7.3 percent. The average number of days on the market until homes sold was 128 days, down 15.2 percent from the previous year and up 9.4 percent from July.
Pricing: The Phenix City median sales price in August was $161,500, an increase of 2.9 percent from August 2016 and an increase of 19.2 percent from the prior month. This direction contrasts with historical seasonal data (2012-16) that reflect the August median sales price on average decreases from July by 5.1 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: “For the first time in 2017, we have increased our full-year growth outlook. The upgrade reflects economic activity gaining momentum at the end of the second quarter, though we see a great deal of uncertainty surrounding the forecast,” said Fannie Mae Chief Economist Doug Duncan. “The list of uncertainties now extends beyond the geopolitical and legislative, as the effects of Hurricanes Harvey and Irma will require time to untangle. Historically, natural disasters that hit heavily populated areas led to substantial near-term declines in economic activity but meaningful rebounds in subsequent quarters due to rebuilding efforts. Thus, economic growth in the second half of 2017 could still average a slightly stronger pace than the first half. Unfortunately, we continue to expect home sales to be flat during the second half of the year compared to the first half due to strong home price appreciation and lean inventories.”
Click here to download graphs from the Phenix City August Housing Report, including Total Sales, Average Sales Price, Days on the Market, Total Inventory and Months of Supply.