Stability seen amid slowdown in regional housing market

Fort SmithNews on the Wire

by The City Wire staff ([email protected]) November 25, 2008 10:56 am 52 views 

Average and median prices of new and existing homes in the Fort Smith/Van Buren markets dropped 7 percent and 2.8 percent, respectively, between Aug. 4 and Nov. 24. This has been the trend, in terms of percentages, for the past 16 weeks. This consistent trend, despite a 12.9 percent drop in the number of Crawford and Sebastian County homes sold for the year, continues to indicate relative stability in the Fort Smith regional housing market.

The housing sector news for other parts of the country is less than stable. Fort Worth-based D.R. Horton, one of the nation’s largest homebuilders, has reported a $1 billion loss in its fiscal fourth quarter. The loss resulted from declining land values and an almost 50 percent decline in home sales.

D.R. Horton had 5,297 homes worth $1.2 billion under contract at the end of the quarter, compared to 10,442 homes valued at $2.7 billion under contract at the end of the same quarter in 2007.

“Market conditions in the homebuilding industry deteriorated during our fourth fiscal quarter and October, characterized by rising foreclosures, high inventory levels of both new and existing homes, increasing unemployment and eroding consumer confidence,” Donald Horton, chairman of the board, said in a statement.

Figures from the Arkansas Realtors Association show the following:

Fort Smith/Van Buren real estate markets
Average list price of new and existing homes
4 AUG: $203,911
24 NOV: 189,547

Median list price of new and existing homes
4 AUG: $154,000
24 NOV: $149,552

Inventory of new and existing homes
4 AUG: 1,116
24 NOV: 1,110

Statewide, the inventory of new and existing homes dropped from 14,070 in early August to 13,312 by Nov. 24. While the state inventory is on a slow decline, it is good news in terms of the state slowing working its way through an oversupply of housing.

In Northwest Arkansas, average list prices of new and existing homes fell from $237,943 in early August to $233,005 by Nov. 24, a 2 percent drop. The inventory of homes in that market has dropped 7.9 percent from 6,767 on Aug. 4 to 6,226 by Nov. 24.