Phenix City Area Residential Sales up 16% in January

Sales: According to the East Alabama Board of Realtors, January residential sales increased 15.7% year-over-year from 70 to 81 closed transactions. Following seasonal trends, sales decreased 37.2% from December. Results were 22% above the 5-year January average of 66 sales. Two more resources to review: Quarterly Report and Annual Report.

For all of the Phenix City Area’s housing data, click here.

Inventory: Total homes listed for sale in January declined 23% year-over-year from 422 to 325 listings. The market currently has 4 months of supply, down 33.4% from 6 months of supply in January 2019.

Pricing: The area’s median sales price in January was $165,000, an increase of 7.8% from one year ago and a decrease of 2.9% from the prior month. This direction is consistent with historical data (2015-2019) indicating that the January median sales price on average decreases from December by 5.5%. 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 January was 115 days, up 6.5% from 108 days one year ago and up 5.5% from 109 days in December 2019.

Forecast: January sales were seven units, or 8%, below the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 88 sales for the month, while actual sales were 81 units.

ACRE’s statewide perspective: Residential sales growth was especially strong in January as total residential sales increased 23.2% year-over-year from 3,347 to 4,122 closed transactions. Markets across the state have plenty of momentum as 2019 was a record year for residential sales in Alabama. Home price appreciation continued to climb as the median sales price in January increased 11.8% year-over-year, marking 27 consecutive months of gains. While properties listed for sale nationwide decreased 10.7% year-over-year, Alabama’s residential listings continued to tighten, decreasing 17% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2019 and continued into January. With low inventory levels, it is not surprising to see homes selling at a slightly quicker pace. Homes selling in Alabama during January spent an average of 92 days on the market, a decrease of 15 days from January 2019.

NAR’s national perspective: Existing home sales increased significantly in January, rising 11.6% year-over-year from approximately 285,000 closed transactions one year ago to 318,000 currently. The nationwide median existing-home price increased 6.8% in January, marking 95 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales. Mortgage rates have helped with affordability, but it is supply conditions that have driven price growth.” Properties listed for sale nationwide declined 10.7% in January from approximately 1.59 million listings one year ago to 1.42 million currently.

Click here to view the entire monthly report.

The Phenix City Area Residential Monthly Report is developed in conjunction with the East Alabama Board of Realtors to better serve area consumers.