Arkansas, area home prices beginning to normalize

Average and median prices of new and existing homes in the Fort Smith/Van Buren markets increased 1.3% and 2%, respectively, between Jan. 5 and April 13, according to figures from the Arkansas Realtors Association.

For the first time in several months, the average list prices of homes in the major Arkansas markets (Little Rock-North Little Rock-Conway, Northwest Arkansas, Jonesboro and Fort Smith-Van Buren) have posted increases.

Ethan Nobles, director of media relations for the Arkansas Realtors Association, said he is hearing from Realtors that the decline in foreclosure property sales is why home prices are again increasing.

“Throughout 2007 and 2008, a good number of builders either went bankrupt, had their newly constructed homes acquired by banks through foreclosure or put those new houses on the market at greatly reduced prices in hopes of selling them quickly,” Nobles noted.

With most of the below-market property out of the system, Nobles said home prices are beginning to return to more normal levels.

Figures from the ARA show the following:
Fort Smith/Van Buren real estate markets
• Average list price of new and existing homes
13 APR: $189,840
5 JAN: $187,232

• Median list price of new and existing homes
13 APR: $149,900
5 JAN: $146,900

• Inventory of new and existing homes
13 APR: 1,028
5 JAN: 1,023

The Fort Smith/Van Buren market, while not getting hit as hard as Northwest Arkansas and central Arkansas markets, is off to a rough start in 2009. There were 218 homes sold in January and February in Crawford, Franklin and Sebastian counties, down 21.2% from the 277 sold in the same period of 2008, an ARA report released April 1 noted. The combined value of the homes sold in January and February in the three regional counties was $26.2 million, down 25% from the same period in 2008.